As 2024 knocks on the door, the Philippine automotive industry reflects on a resurgent year of growth, with anticipation building for what lies ahead.
Tey Sornet, a trusted source within the industry, recently shared the official tally of vehicles sold by members of the Philippine Automotive Dealers Association, offering insights into the overall status of the local automotive market.
Unsurprisingly, Toyota remains the dominant car brand in the country, capturing a commanding 46 percent share of the market. With a total of 180,480 passenger cars and commercial vehicles sold from January to November, Toyota’s popular models such as the Fortuner, Vios, and Innova continue to appeal to both new and seasoned car buyers.
Commercial vehicles continue to outperform passenger cars in terms of popularity, a trend that has persisted for several years. Toyota’s commercial vehicle sales reached an impressive 130,586 units, compared to 49,894 passenger cars.
Mitsubishi secures the second position overall, with a total of 180,480 vehicles sold. The company’s strong performers include the Montero, Xpander, Strada, and Mirage. Mitsubishi sold 23,436 passenger cars and 49,282 commercial vehicles, further solidifying its position in the market.
Ford takes the third spot with a total of 28,568 vehicles sold, of which 28,302 were commercial vehicles, led by the popular Next-Gen Territory, Ranger, and Everest.
Surprisingly, Suzuki makes a strong showing in the passenger car segment, securing the third position with total sales of 8,134 units. Overall, Suzuki ranks fifth, with a total of 16,676 sales, including 8,542 commercial vehicles. Nissan follows closely behind in fourth place, with a total of 23,780 units sold, while Isuzu takes the fifth spot with 16,046 units.
In total, the period from January to November witnessed a sales volume of 391,761 vehicles, with 96,843 passenger cars and 294,922 commercial vehicles. As the December figures are yet to be accounted for, 2023 has already proven to be a banner year for the Philippine automotive industry.
The industry finds itself at a crossroads with the entry of several Chinese car manufacturers bringing electric vehicles (EVs) into the market. This has prompted a debate about whether to continue embracing internal combustion engine (ICE) vehicles or join the global push towards EV adoption.
According to the Electric Vehicles Association of the Philippines, the country currently has approximately 16,000 EV units. The statistics show a significant increase in EV registrations at the Land Transportation Office, with 2,557 EVs registered from January to June alone. Of this total, 2,041 units are hybrid vehicles, utilizing both fuels and electric batteries, while 516 are pure EVs relying solely on electric power.
The rise in EV awareness received a boost from Malacañang Executive Order No. 12, issued early in January 2023. The order suspended import duties for EVs for the next five years and lowered tariffs from 5 to 30 percent, further incentivizing the adoption of EVs.
The year also witnessed key leadership changes within major car manufacturers, highlighting their commitment to positioning themselves for the industry’s future growth. Toyota announced the appointment of Masando Hashimoto as vice president, succeeding Atsuhiro Okamoto. Koichiro Hirao assumed the presidency of Suzuki Philippines in March.
Sojitz G Auto Philippines, the distributor of Geely, appointed Naoyuki Takeda as its new president and CEO starting January 1, 2024. In July, Rommel Sytin announced the appointment of Froilan Dytianquin as the new managing director of Chery Philippines. Froilan previously held a position at Geely.
Foton Philippines promoted Levy Santos to the role of general manager, alongside Jude Recadio as sales director and Donabel Santos as AVP for sales operations. Former Foton Philippines president Errol Duenas moved to BYD Philippines as the sales and dealer development director.
Astara Philippines witnessed Arlan Reyes, previously associated with Mitsubishi and Tata Motors, assuming the role of brand manager for JMC and Peugeot. Franz Decloedt transitioned from AC Motors to become the brand head of GAC Motors, while Timmy Naval-De Leon, also from AC Motors, joined Asta as the marketing director.
The most significant news, however, was the recent confirmation by Maria Fe Perez Agudo of her team’s takeover of The Covenant Car Company Inc. (TCCCI), the distributor of Chevrolet and the new KG Mobility in the Philippines. Agudo, former president and CEO of Hariphil Asia Resources Inc., the local distributor of Hyundai trucks and buses, brings her expertise and vision to the evolving automotive landscape.
As 2023 draws to a close, the Philippine automotive industry stands on the cusp of transformation, poised to embrace the challenges and opportunities presented by the rise of EVs and the changing dynamics within the market. With strong sales figures, new leadership, and a growing EV sector, the stage is set for an exciting and transformative year ahead in 2024.