Philippines 2023. Vehicle Market Jump Up 17% At The Second Highest In History

The 2024 Geely Galaxy L7
The 2024 Geely Galaxy L7

Philippines Vehicle Market in 2023 advanced at the second highest level ever. Total vehicles sales reached 442,150 (+17.1%). While Toyota kept the leadership, Mitsubishi was the fastest growing.

Market Trend and Outlook

The Philippines economy has continued to show strong recovery from the COVID-19 pandemic during 2023, with GDP growth strengthening to a pace of 5.9% y/y in the third quarter of 2023, compared with GDP growth of 4.3% y/y in the second quarter of 2023.

The continued rapid economic expansion in 2023 follows a strong rebound from the COVID-19 pandemic during 2022, which drove the pace of growth of the Philippines economy to the fastest rate since 1976.

The Philippines GDP growth rate of 7.6% in 2022 was comparable to some of the world’s fastest growing large emerging markets in 2022, including the Gulf Co-operation Council oil exporting nations of Saudi Arabia and United Arab Emirates, as well as other rapidly growing Asian emerging economies such as Malaysia, Vietnam and India.

In such positive economic environment, the automotive industry is evolving rapidly and following the sharp fall reported in 2020 is growing with a fast speed since 2021.

In 2023 total vehicles sales have been 442.150 (+17.1%) surging at the second highest level ever after the record posted in 2017.

In the competitive arena, cumulative figures up to December 2023 report that the leader Toyota is up a huge 16.3%, followed by Mitsubishi (+47.3%), Ford (+28.0%), Nissan (+30.7%), Suzuki (-8.0%) and Isuzu (-21.1%).

Looking at the best selling models the Toyota Vios is on top with a 10.2% year-on-year increase in sales, followed by the Toyota Hilux up 5.8%.

Medium-Term Market Trend

The Philippines market have been one of the fastest growing in the decade before the covid arrive, with sales jumped from just over 150k in the 2010 to over 400K in 2019, with a peak hit in the 2017, when the all-time record was established at 487.000.

In the 2020 the pandemic arrival caused prolonged shutdown in plants and dealership and the market really collapsed losing 40.8% versus the previous year, hitting the worse level out if the previous seven years.

However, the fall was not caused by structural reasons and the recovery was immediate with 2021 sales recovering the 300k level and the pathway continued in 2022 with sales up to 397.848 (+7.2%).

Future perspectives are positive, considering the market potential is not far from the 1 million annual sales and we foresee this market as one of the best performing between now and the 2030.

Tables with sales figures

In the tables below we report sales for top 10 Brands and top 10 Models

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