Philippine auto industry poised for record sales in 2025, says Toyota PH chair

The Philippine automotive industry is on track for another record-breaking year, with vehicle sales expected to exceed 500,000 units in 2025, according to Toyota Motor Philippines chair Alfred Ty.

Speaking before members of the media on Friday, Jan. 31, 2025, Ty cited strong economic fundamentals, increasing motorization, and favorable market conditions as key drivers for sustained growth.

In 2024, the industry recorded its highest-ever sales, reaching 474,000 units — an 8-percent increase from the previous record set in 2017. Ty highlighted the broader economic impact of this milestone, including job creation, increased government revenues, and strengthened local manufacturing prospects.

Key takeaways:

• The Philippine auto industry hit an all-time high of 474,000 vehicle sales in 2024, surpassing the previous record of 473,000 units in 2017.
• Toyota, including its Lexus luxury brand, led the market with 218,019 units sold in 2024, marking another record high.
• The industry’s growth reflects the country’s expanding economy, increased mobility, and rising consumer demand.
• Auto sector expansion contributed approximately P70 billion in taxes and supported 138,000 direct and indirect jobs.
• Toyota’s operations in the Philippines accounted for 69,000 jobs and $1 billion in exports, further reinforcing its role in the economy.
• The return of the Tamaraw is expected to be a game-changer for local manufacturing and the broader industry.
• Ty projects 2025 industry sales to reach 512,000 units, representing another 8-percent growth year-on-year.
• Strong macroeconomic fundamentals, including GDP growth exceeding 6%, stable exchange rates, infrastructure projects, and increased consumer spending, are expected to sustain demand.
• The continued influx of international automakers signals growing confidence in the Philippine auto market.

Alfred Ty

The TMP chair is bullish about the industry hitting record sales in 2025 after a record-breaking 2024.

Ty emphasized that the industry is evolving into a major pillar of national economic development.

“The rapid and significant influx of automakers and brands is a welcome indicator. Increasing sales volumes attract more investments, which strengthens local manufacturing,” he said.

The expected half-million unit milestone in 2025 presents new opportunities for localized production, aligning with Toyota’s advocacy for “Gawa ng Filipino para sa Filipino”.

He urged automakers and government stakeholders to work together to develop a more unified automotive program that positions the Philippines as a regional manufacturing hub.

The Toyota executive also acknowledged the role of government policies and infrastructure spending in sustaining market growth. With the financial sector in a strong position, consumer loans increasing, OFW remittances rising, and BPO earnings expanding, the market is well-positioned for continued expansion.

As the automotive industry enters 2025 with strong momentum, Ty reaffirmed Toyota’s commitment to supporting the sector’s growth.

“There is so much to look forward to in 2025, and we count on the continued partnership of all stakeholders to make this happen,” he said.

— Edited by Daxim L. Lucas