Driven to Half a Million

PH Car Industry Gears Up for Historic Sales Milestone

MANILA — The Philippine automotive industry is on track to hit an all-time high of 500,000 car sales by the end of 2025, industry officials said at the Auto Parts & Vehicles Expo held at the World Trade Center in Pasay City.

GT Capital Auto & Mobility Holdings Chairman Vince Socco said they’re forecasting approximately 512,000 vehicle sales for the year, surpassing last year’s record of 475,000 units. “In the region, the Philippines is actually the second fastest growing market after Vietnam,” Socco noted. “It’s a very encouraging outlook.”

As of the first half of the year, the sector is already showing a 6% increase in sales, and if the pace continues, the target of half a million units is within reach. Data from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) show 190,429 units sold from January to May, up 1.7% from the same period last year.

Socco said that breaking past the 500,000 mark would put the Philippines in the same league as Malaysia, Thailand, and Indonesia in terms of car sales—a strong sign of the country’s growing motorization.

He added that the country is beginning to benefit from economies of scale. “The growing vehicle population means we need to also ramp up local manufacturing of auto components. That’s where government support will be crucial.”

The event comes amid trade talks with the United States. President Ferdinand Marcos Jr. recently agreed to open up the local auto sector to more American imports as part of a new bilateral deal. In contrast, the U.S. will begin imposing a 19% tariff on Philippine exports starting August 1.

While the trade agreement grants zero tariffs for U.S. vehicles entering the Philippines, Socco believes the immediate impact may be limited. “American brands like Chevrolet, Ford, and Jeep are already here. Most of them source their units from ASEAN countries like Thailand and Indonesia where tariffs are already zero,” he explained.

However, he added that with zero tariffs in place, U.S. carmakers may introduce more models, particularly completely built units that aren’t produced in the region—offering more choices for Filipino consumers.

Meanwhile, the government is eyeing $1.28 billion in auto parts exports by 2025, up from $1.21 billion last year, signaling confidence not just in domestic demand but also in the sector’s export potential.

Trade Secretary Ma. Cristina Roque said final negotiations with the U.S. are ongoing but stressed that the Philippines has already given what it can in the talks, particularly in excluding sensitive agricultural products such as sugar and rice from the deal.

As the second half of 2025 rolls in, industry leaders remain hopeful that no economic disruptions will stall momentum. “It’s a good time to be in the auto sector,” said Socco.