Copyright FOURIN, Inc. 2023
The Philippines's Automobile Market Forecast for 2023
The number of automobiles sold in the Philippines in 2022 is expected to increase by about 30% from the previous year to about 380,000 units. In 2021, in addition to the impact of the resurging new coronavirus infection, the imposition of provisional safeguard duties on imported vehicles drove down demand to a low level of around 250,000 units. Although demand is forecast to improve in 2022, surpassing 300,000 units, sales are not expected to reach the pre-corona level of over 400,000 units at least until 2024.
The automobile market in 2023 is expected to decline to around 340,000 units due to worsening economic conditions and tax reforms. The proposed Passive Income and Financial Intermediary Taxation Act (PIFITA) includes an excise tax on pickup trucks, which make up nearly 20% of the market. If it passes, it could weaken sales. In addition, there are also concerns about rising inflation and interest rates as well as a recession.