November 25, 2024 | 12:00am
MANILA, Philippines — Philippine vehicle sales may hit a record-high of 500,000 units next year, driven by election-related spending and low interest rates, according to an industry official.
Federation of Automotive Industries of the Philippines Inc. president Vicente Mills Jr. told reporters that vehicle sales in the country may reach 500,000 units next year.
“The growth factors are the election, plus interest rates are starting to go down,” he said.
The Philippines is set to hold midterm elections on May 12, 2025 and the automotive industry expects to benefit from campaign-related spending.
Last month, the Bangko Sentral ng Pilipinas (BSP) reduced the key interest rate by 25 basis points to six percent, continuing the easing cycle it started in August.
BSP Governor Eli Remolona Jr. has said another interest rate is possible in December.
As the central bank lowers interest rates, Mills said it becomes affordable to purchase vehicles.
With the economy expected to continue to improve and post another five to six percent growth, he said vehicle sales would also continue to pick up.
Vehicle replacement and the rollout of electric vehicles are also expected to drive vehicle demand.
“I think the trend will be [for vehicle sales] to continue to go up because our fleet, the country’s fleet, is really old. And now that the new engines are coming up, electrification is coming up, people will start converting,” Mills said.
Earlier, Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) president Rommel Gutierrez said the country may hit record sales of 500,000 units “if not this year, next year because we are almost there.”
He also said the industry may achieve the goal to sell 468,300 vehicles this year with demand expected to pick up during the holiday season and new models to be launched in the market.
Latest data from the CAMPI and Truck Manufacturers Association showed vehicle sales rose by 8.9 percent to 384,310 units in the January to October period from 352,971 units in the same period last year.
Be the first to comment