The Philippines is expected to be in the same level as Indonesia, Thailand and Malaysia when it hit breaches the 500,000 unit sales target this year, according to a top ranking industry leader.
Vince Socco, chairman of GT Capital Auto and Mobility Holdings, Inc., said the assumption of the country breaching the 500,000 unit sales mark is that geopolitical and geoeconomic events stabilize in the second half of the year.
“This will put the country on the same level as Indonesia, Thailand, and Malaysia with markets exceeding the half million mark,” said Socco in a speech at the recent Auto Parts & Vehicles Expo (APV Expo). This will also be the first time for the Philippines to hit the 500,000 unit sales mark, he noted.
According to Socco, growth in the domestic automotive industry is largely driven by the country’s economic fundamentals that sustained an increase in GDP averaging 6 percent from 2005 to 2019.
Growth returned post pandemic, but was subdued by geopolitics. In addition, Socco attributed the rise in automobile sales to the availability and access to consumer credit. The introduction of electrified models has also opened new market segments.
From a nil share of alternative energy vehicles in 2019, this increased to 5.1 percent in 2024 and 9.2 percent as of May this year. There are around 50 different original equipment manufacturer (OEM) brands competing for a share of the Philippine market.
Finally, he said, the transition of consumer behavior from car ownership to car usership has also led to new new demand. This includes connected, shared and electrified mobility solutions.
