Manila: BMI, a unit of Fitch Solutions, said automotive vehicle sales in the Philippines will continue to grow this year supported by robust economic activities.
In a commentary sent to the press Friday, BMI adjusted upward its growth projection for vehicle sales in the country from 1.6 percent last year to 8.5 percent this year, seeing a total sales of 466,500 units for 2024.
BMI said this will be driven by the commercial vehicle (CV) segment, whose sales volume is expected to rise by 7 percent to 343,000 units backed by strong growth in the construction and mining sector this year.
‘We project demand for CVs to be bolstered by robust growth in the construction sector, driven by substantial government expenditure and increases in fixed capital investment as businesses expand their operations. Additionally, the mining and quarrying sectors will contribute to the growth in medium and heavy truck sales,’ it said.
However, the outlook for CV sales growth next year is seen to slow down to 1 percent.
Near-ter
m demand for passenger cars (PC) will also back the overall industry’s growth this year supported by strong labor market and economic growth.
‘The unemployment rate has declined to its lowest level in nearly two decades, exerting upward pressure on incomes and thereby enhancing car affordability,’ BMI said.
BMI also revised significantly its growth forecast for PC sales from 1.5 percent to 13 percent.
‘For 2025, we anticipate that reduced borrowing costs will continue to support the growth of the passenger car segment, as households respond favorably to lower financing rates,’ it added.
The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association reported that vehicle sales for the first eight months of the year reached 304,765 units, 10.3 percent higher than the 276,200 units sold in the same period last year.
‘This impressive growth is a testament to the confidence and support of our consumers,’ CAMPI President Rommel Gutierrez said.
‘This year, the Phil
ippine market experienced a diverse array of product offerings, addressing various consumer needs, thanks to numerous new model releases from both established and emerging industry players. Additionally, there is growth in the sales of electric and hybrid vehicles effectively supported by government incentives aimed at promoting environmentally friendly transportation,’ Gutierrez added.
Source: Philippines News Agency