MANILA — BMI, a research firm under Fitch Solutions, forecasts a significant uptick in automotive vehicle sales in the Philippines for 2024, driven by vigorous economic activities and sector-specific growth. The firm projects an 8.5 percent increase in vehicle sales, reaching a total of 466,500 units this year, up from a 1.6 percent growth last year.
According to Philippines News Agency, BMI’s optimism is particularly strong for the commercial vehicle (CV) segment, which is expected to see a 7 percent rise to 343,000 units. This growth is attributed to robust expansions in construction and mining sectors, fueled by government spending and capital investments from businesses. However, BMI anticipates a slowdown in CV sales growth to 1 percent next year.
The passenger car (PC) segment is also poised for substantial growth, supported by a thriving labor market and broader economic strength. BMI revised its growth forecast for PC sales up to 13 percent from 1.5 percent, buoyed by the lowest unemployment rates in nearly two decades, which enhances vehicle affordability through rising incomes.
For 2025, BMI expects continued support for the passenger car market from reduced borrowing costs, making financing more accessible for consumers. The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association highlighted that vehicle sales for the first eight months of the year have already exceeded expectations, registering 304,765 units, which is a 10.3 percent increase over the same period last year.
CAMPI President Rommel Gutierrez attributed this growth to consumer confidence and a diversified market response to new automotive offerings, including the rising sales of electric and hybrid vehicles propelled by government incentives promoting eco-friendly transportation solutions.