The automotive market in the Philippines has shown robust growth in June 2024, continuing a positive trend that has characterized the first half of the year. According to recent data, new vehicle sales in June increased by 8% compared to the same month last year, reaching a total of 39,088 units, up from 36,211 units in June 2023.

First Half of 2024 Performance

The overall performance for the first half of 2024 has been impressive, with total vehicle sales rising by 11.8% compared to the same period in 2023. From January to June 2024, the industry sold 226,279 units, a significant increase from the 202,415 units sold during the first six months of the previous year. This growth has been driven by both commercial vehicles and passenger cars, with commercial vehicle sales increasing by 10% and passenger car sales by 18%.

Key Market Players

Several major automotive brands have contributed to this growth. Toyota, the market leader, saw its sales rise by 12%, while Mitsubishi experienced a 15% increase. Other notable performers included Ford with a 4% increase and Nissan with a 6% rise. Suzuki also played a significant role in the expanding market.

Market Dynamics and Trends

Despite the year-over-year growth, the market did experience a slight 3% decline in sales from May to June 2024. This month-over-month decrease, however, does not overshadow the overall positive trend for the year.

• An important development in the Philippine automotive market has been the inclusion of hybrid electric vehicles (HEVs) in the zero tariff program. This policy change is expected to further boost the sales of environmentally friendly vehicles, aligning with global trends towards sustainable transportation.

The Philippine automotive market continues to exhibit strong growth, driven by increased sales across both commercial and passenger vehicle segments. With major brands performing well and supportive government policies in place, the industry is poised for continued expansion in the coming months.

Below are the key predictions for auto sales trends in the Philippines for the remainder of 2024:

Conservative Growth Forecast

The Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) has set a conservative sales target of 468,300 units for 2024, representing a growth of around 9% compared to 2023. This projection takes into account various factors influencing the market, including:

• Introduction of new vehicle models

• Expansion of electrified vehicle lineups, especially in the hybrid electric vehicle (HEV) segment

• Entry of new brands into the Philippine market

Potential for Exceeding Targets

While the official forecast is conservative, there are indications that actual sales could surpass these projections:

• The 9th Philippine International Motor Show, scheduled for the second half of 2024, is expected to boost sales significantly.

• Industry experts believe sales could potentially reach 500,000 units, exceeding the initial forecast.

Continued Growth Trajectory

The positive trend observed in the first half of 2024 is likely to continue:

• Year-to-date sales up to May 2024 showed a 12.7% increase compared to the same period in 2023.

• Both commercial and passenger vehicle segments are experiencing growth, with commercial vehicles up 11% and passenger vehicles up 17.6% in the first five months of 2024.

Market Dynamics

Several factors are expected to influence the market for the remainder of 2024:

• Supply Chain Improvements: Better supply conditions, particularly for semiconductor chips, are likely to support increased production and sales.

• Consumer Demand: Strong consumer demand, coupled with increased automotive financial schemes and extensive sales activities, is expected to drive growth.

• Electrification: The inclusion of hybrid electric vehicles (HEVs) in the zero tariff program is anticipated to boost sales of environmentally friendly vehicles.

• Brand Performance: Toyota, Mitsubishi, and Ford are expected to maintain their positions as the top three brands in the market.

Regional Context

The Philippines' auto sales trends align with broader Southeast Asian market dynamics:

• The ASEAN region, including the Philippines, is poised for steady growth in the automotive sector.

• Increased demand for private vehicles and favorable economic conditions are expected to support this growth.

While these predictions suggest a positive outlook for the Philippine auto industry in 2024, it's important to note that factors such as inflation risks and potential changes in taxation policies for certain vehicle types (e.g., double cab pickups) could impact the market. Nevertheless, the overall trend points towards continued growth in the Philippine automotive sector for the remainder of 2024.

According to sales data, these are the top 10 electric vehicles (EVs) that sold the most in the Philippines in June 2024:

• Chery Omoda E5 - 596 units

• Wuling Cloud EV - 498 units

• GAC GS3 Emzoom and M6 Pro - 351 units

• MG 4 EV - 325 units

• Hyundai Ioniq 5 - 173 units

• Wuling Air EV - 171 units

• Citroen E-C3 - 101 units

• Neta V-II - 93 units

• BinguoEV - 73 units

• MG ZS EV - 48 units