Automotive industry in the Philippines are looking up. They expect to sell 450,000 cars in 2024, which is pretty good news. Back in 2017, they had hoped to sell 1 million cars but couldn’t reach that target. Things have been steady though – they sold 290,000 cars in 2021 and have been selling about 200,000 cars each year since 2022. Looking ahead, experts think car sales will keep growing, and they might finally hit their big goal of 1 million cars by 2030. This report will explore the factors driving this growth and outline new car launches planned by various companies from 2025 onwards.
Expected Launches by Brand
The growth of the automotive industry in the Philippines is driven by new car launches and the expansion of current model line-ups. Here are some of the expected auto trends and launches by brand:
Electric and Hybrid Cars Coming Soon:
BYD is stepping up with the Seal and Sealion, plus a luxury MPV in the works. Chery’s bringing an exciting auto trends with all-electric crossover (eQ7) and impressive range – 512 kilometers on a single charge!
Exciting Pickups and SUVs:
- Changan’s launching a unique range-extended electric pickup
- Geely’s updating the Coolray with an affordable price tag
- GAC is introducing hybrid models like the Emkoo and S7
- Honda’s expanding its hybrid lineup with the CR-V and Civic
- Isuzu might add a mild-hybrid D-Max
- JAC is coming with an all-electric pickup truck
Electric Innovation Highlights:
- Kia’s launching the EV5
- Lynk & Co’s Z10 electric sedan can sprint 0-100 km/h in just 3.5 seconds
- MG is bringing the exciting Cyberster
- Nissan’s all-electric Ariya SUV arrives in May
- Volvo’s introducing the fully electric EX30 SUV
You can find these eco-friendly cars in many different styles and prices, from small cars to bigger ones.
Economic Impact of the Automotive Industry in the Philippines
The car industry helps the Philippines in many ways beyond just selling vehicles and aligning with auto trends. It creates many jobs – people work in car factories, dealerships, and repair shops. Also, big international car companies are putting more money into doing business in the Philippines.
Automotive Manufacturing: A Growing Sector
Companies like Toyota and Mitsubishi that make cars in the Philippines are very helpful to our country’s money. For example, when Toyota starts making the Tamaraw here, it will give more people work and help other businesses in the Philippines also become bigger.
Revenue Generation and Tax Contributions
The industry contributes billions to the Philippine treasury through taxes, customs duties, and fees. As new vehicle sales grow, so does the revenue from excise taxes, value-added tax (VAT), and registration fees.
Regional Growth in Automotive Sales
The Philippine automotive industry highlighting different auto trends is not just growing in urban centers but also in regional areas, where infrastructure development is spurring demand.
Urban vs. Rural Markets
- City Areas (like Metro Manila): People in big cities mostly buy regular cars and small SUVs.
- Rural Places (like Davao, Iloilo, and Pampanga): People in smaller towns and provinces prefer pickup trucks, work vehicles, and cheaper cars.
What’s Helping Sales Grow
- New and better roads from government projects are making it easier for people to drive everywhere
- Places that get lots of tourists and do more business (like Palawan and Bicol) need more vehicles for work and moving people around
Challenges and Opportunities in the Industry
Problems the industry is facing:
- There aren’t enough places to charge electric cars, which makes people hesitate to buy them
- Car makers can’t get all the parts they need, like computer chips, which slows down making new cars
- With prices going up everywhere, people have less money to spend on expensive things like cars
Good things ahead:
- Companies and governments are working together to build more charging stations for electric cars
- Car companies can sell more vehicles in country areas, especially trucks and vans for businesses
- New cars are getting smarter with AI and features that connect to the internet
Anticipated Auto Trends in the Philippine Automotive Market
- More Electric Cars: The government will help bring more electric vehicles to Philippine roads, and they’ll become very common.
- Smarter Cars: Cars will start driving themselves a bit – they’ll have special features that help drivers with things like parking and staying in their lane.
- Greener Car-Making: Car companies will build their vehicles in ways that are better for the environment, creating less pollution.
Comparative Analysis with Neighboring Markets
The Philippine automotive industry is growing steadily but still lags behind regional peers like Thailand and Indonesia.
| Country | 2024 Vehicle Sales (Estimated) | Key Drivers |
|---|---|---|
| Indonesia | 1,050,000 | Large population, government-backed EV programs |
| Thailand | 850,000 | Strong local manufacturing, export-driven market |
| Philippines | 450,000 | Emerging middle class, government incentives |
While Thailand and Indonesia have a more established automotive industry, the Philippines is catching up, particularly in the EV and hybrid sectors.
Logistics Players Supporting the Automotive Sector
Several logistics companies operate in the Philippines, providing solutions tailored to the automotive industry.
Transportify: Affordable and Flexible Logistics Solutions
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Transportify is one of the most trusted logistics providers in the Philippines, offering flexible and cost-effective solutions for the automotive industry. It supports:
- Vehicle Delivery: Transportify provides on-demand delivery services for dealerships and individuals, ensuring vehicle spare parts are delivered promptly.
- Nationwide Reach: With its expansive service coverage, Transportify caters to both urban centers and remote areas, addressing the distribution challenges unique to the Philippines.
- Customizable Services: Clients in the automotive sector can customize transport options, including bulk deliveries and scheduled shipments.
Lalamove: Rapid and Reliable Automotive Logistics
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Known for its express delivery services, Lalamove offers quick transportation of smaller automotive parts and accessories within urban areas.
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- Parts Express: Offers rapid delivery options for urgent automotive parts, ensuring that production lines and repair shops receive components swiftly to avoid downtime.
- Vehicle Fleet Solutions: Supports automotive companies with scalable logistics solutions, allowing for the flexible management of supply needs in response to market changes.
- Technology Integration: Utilizes an advanced technological platform that enables real-time tracking and scheduling, enhancing efficiency in the supply chain management for automotive clients.
2GO: Comprehensive Supply Chain Partner
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With a focus on nationwide cargo and freight services, 2GO supports large-scale vehicle distribution and spare parts transportation.
- Integrated Logistics: Provides a comprehensive suite of services including sea freight, air freight, and land transportation, tailored to the needs of the automotive sector for the distribution of vehicles and bulky parts.
- Warehousing Solutions: Offers specialized warehousing services that cater to the unique storage needs of automotive parts, ensuring safe and secure handling of sensitive components.
- Custom Clearance & Freight Forwarding: Expertise in managing regulatory compliance and documentation, streamlining the import and export processes critical for the automotive industry.
DHL: Global Expertise in Logistics
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As a global logistics leader, DHL provides end-to-end supply chain solutions for automotive clients, including warehousing and international freight forwarding.
- International Logistics Network: Employs a global logistics network that facilitates smooth international transport and supply chain management for automotive manufacturing and distribution.
- Customized Automotive Solutions: Develops tailored solutions that include just-in-time delivery and inventory management, crucial for reducing lead times and optimizing production schedules.
- Sustainability Focus: Advocates for green logistics solutions, aligning with the automotive industry’s shift towards sustainability and reduced environmental impact.
The Philippines’ automobile sector is thriving and resilient, and sales are predicted to keep increasing over the next several years. This growth is facilitated by the debut of new automobile models and the extension of existing model lineups. Customers may anticipate a variety of options in the market as the industry adjusts to the demand for electric and hybrid vehicles.
