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Automotive industry in the Philippines

From Wikipedia, the free encyclopedia

The Toyota Vios was the best-selling car in the Philippines from 2008 until 2016, and again from 2018 to 2024.
The Mitsubishi Lancer was considered an automotive icon in the country, having been built in the country since the first generation up until its last generation in 2017.
The Toyota Corolla was considered a pioneer of the Philippine automotive industry, and it was also the country's best-selling car until 1998.
The Ford Escape was one of the last locally-built cars by Ford that were exported to other countries. Since then, most Philippine manufacturing facilities only serve the domestic market. The Escape would reappear in 2015 as a direct import from the United States.

The automotive industry in the Philippines is one of the largest in the Asia-Pacific region, with approximately 441.4 thousand vehicles sold in 2023.[1][2] Most of the vehicles sold and built in the Philippines are from foreign brands.

For the most part, the Philippines is dominated by Japanese automobile manufacturers, like most of its ASEAN neighbors.[3] Automobile production is upheld by the Philippine Motor Vehicle Development Program implemented by the Board of Investments.[4] In addition, there are also a small number of independent firms that assemble and fabricate jeepneys and other similar vehicles, using surplus engines and drivetrain parts mostly from Japan.

The Philippine automobile industry consists of two sectors: motor vehicle assembly and vehicle parts manufacturing. The country also has active premium vehicle and commercial vehicle markets.

Automobile sales in the Philippines mostly consist of locally assembled and imported cars, notably from Thailand, Indonesia, and other such countries. In 2019, an imported vehicle coming from Indonesia cost 24 percent less than a locally made equivalent. The same cost difference applies to completely built-up cars from South Korea (also 24 percent) and Thailand (18 percent).[5] The country also imports cars from China, India, and the United States.

History

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The Philippine automobile industry started during the American colonial period from 1898 to 1946. Cars and motorcycles were introduced around 1901 and made available in the country by trading companies. The general population was accustomed to animal-drawn vehicles; initially, only the wealthy could afford to buy and own these newly introduced automobiles. In those days, it took at least three months to ship a car from Europe or the US to Manila.

Dr. Juan Miciano is acknowledged as the first Filipino to buy and operate a motor vehicle—a French-made Richard-Brasier which he bought in 1901 according to a 1910 motor car directory.[6] Prior to that, the US Army Signal Corps had in December 1900 brought a number of Woods electric cars into the country for military use only. It marked the early appearance of motor cars in the country.[7]

In 1931, the Automobile Association Philippines (AAP), the country's largest and oldest car club, was born as the Philippine Motor Association (PMA), a non-stock corporation and nonprofit organization. The PMA was founded by Jorge B. Vargas, Carlos P. Romulo and Albino SyCip. In 1951–1952, it became an affiliate of the Alliance Internationale de Tourisme and Fédération Internationale de l'Automobile. In 1953, Philippine President Elpidio Quirino officially named it the National Auto Club. In 1963, it was authorized to issue the Philippine International Driving Permit. The PMA's first office was located at the Manila Hotel; in 1937, it relocated to the Legarda-Hermanos buildings in Quiapo, Manila. In the 1980s, it relocated to AAP Tower at 683 Aurora Boulevard in Quezon City. Currently, it is led by President Augustus V. Ferreria and Vice President David L. Arcenas.[8]

During the early days of the Filipino automobile industry, American-made marques such as Mercury, Buick, Chevrolet, Ford, and Dodge dominated the market from the 1920s through the early 1970s. The country pioneered the establishment of automotive assembly in the Southeast Asian region. An import substitution policy introduced in the 1950s led to a ban on fully-built vehicle imports, which was later replaced by high tariffs from 1951 until 1972.[9]

American- and European-made cars were a common sight on the country's road by the 1960s. In that same decade, Japanese-made cars were introduced to the market. The Philippine auto industry was at the forefront of the Southeast Asian auto industry during that period. By the mid-1960s, fuel economy and practicality became important criteria for a growing number of car buyers in the country, which the Japanese car manufacturers were best equipped to serve. Consequently, General Motors (among other American manufacturers) utilized its European and Australian subsidiaries, Vauxhall and Holden, to introduce mid-size and compact cars to compete with Japanese marques in the expanding market.[10]

Localization

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Volkswagen Sakbayan

In the 1970s, local production of automobiles in the Philippines began in 1975 with mostly passenger cars and some commercial vehicles. During the 1973 oil crisis, then-President Ferdinand Marcos advised Filipinos to buy smaller, more efficient vehicles with four-cylinder engines. Demand for American-style full-size sedans subsequently fell in favor of smaller, more economical cars. By the mid-70s, the popularity of full-sized American cars had quickly dwindled and the compact, subcompact, and some mid-sized cars have quickly become popular ever since then.

In 1973, the government instituted the Progressive Car Manufacturing Program (PCMP), a system with scheduled increases in local parts content requirement, which also allowed program participants to import a certain proportion of completely built-up vehicles.[9] The original participants were General Motors, Ford, PAMCOR (a Chrysler/Mitsubishi joint venture), Delta Motors Corporation (Toyota), and DMG Motors (Volkswagen). DMG attempted to domestically produce a "national car", the Country Buggy-based Sakbayan (a portmanteau of sasakyang katutubong bayan, "original national vehicle"), as well as the Trakbayan light truck.[11] This project, however, did not last long.[9]

During the 1980s, Japanese and some European marques dominated the Philippine market. However, by 1985, following the political and economic turmoil that worsened with the assassination of opposition politician Ninoy Aquino, several car manufacturers left the Philippine market. Cars like the Nissan Stanza and Mitsubishi Lancer were the only choice left for new car buyers, while most people drove older cars, resulting in a drastic nationwide industry downturn. In this era, Thailand would gain a reputation as the "Detroit of Southeast Asia", with their industry currently ranking 1st in Southeast Asia and 12th globally.

After Marcos

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The Mitsubishi L300 has the longest vehicle production run in the Philippines under a single generation. Production started in 1987, and again in 2019.

The original PCMP members—Toyota, Mitsubishi, and Nissan—resumed business operations in the Philippines in 1988 after the People Power Revolution ousted Marcos in 1986, and eventually, no less than 13 manufacturers vied for a market limited to around 100,000 cars per year.[9] With the recovery of the country's economy from the 1980s until the mid-1990s, the automotive industry followed suit, with local vehicle manufacturers hitting 138,000 units in 1996. This figure is 85 percent of the domestic vehicle sales of the period.[12]

During the 1997 Asian financial crisis, several makers withdrew as sales tanked, becoming de facto completely built up (CBU) importers rather than assemblers. Since 1998, the Philippine automotive manufacturing policy has been in a flux, undermined by the abundance of lightly used cars from Japan and South Korea.[9]

A new tax reform program in 2002 undermined local assembly further by lowering sales taxes on the cheapest microcars sold in the country, most of which were imported from other ASEAN countries or China. Meanwhile, the popular locally assembled Asian utility vehicles (AUVs) with high Philippine parts content were hit with considerable sales tax increases due to their larger engines and higher upfront prices.[9] Total industry sales plummeted to five digits annually from 1998 to 2006. In 2007, car sales in the Philippines began to climb to pre-crisis levels, during which total sales reached 144,435 units.[12] Production of completely knocked down (CKD) cars remained stagnant after the 1997–1998 economic crisis, and since 2008, CBU imports have outnumbered locally assembled cars.[12]

The 2010s saw the arrival of new car brands and models to the Philippines. From 2015 onwards, the country's automobile market began progressing, before again struggling due to the COVID-19 pandemic. Even before the pandemic, sales were greatly affected by the 2020 Taal Volcano eruption. Although sales are recovering, monthly average sales are still significantly below pre-pandemic figures.

Government programs

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Progressive Car Manufacturing Program

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The Mitsubishi Cimmaron HPR (high side pickup with roof) is the predecessor to the Mitsubishi L300 FB. It used the 1.4-litre 4G41 engine, mated to a column-shifted 4-speed synchromesh manual transmission. Rarely seen on the road these days, it can still be seen in provinces as a jeepney.

In 1973, President Ferdinand Marcos signed the Progressive Car Manufacturing Program (PCMP). Innitially, four car manufacturers were chosen to be part of the program, but Ford Motor Company was determined not to be left out. Ford proposed to the government that, if included, it would provide a stamping plant. After an 11-hour proposal, the deal was settled and PCMP ended being a five-participant venture.[13] The program consisted of Delta Motors Corporation (Toyota), General Motors Pilipinas, Ford Philippines, DMG, and PAMCOR (Mitsubishi and Chrysler).[9]

Each of the five PCMP participants was spurred to produce an affordable AUV completely from local materials, designed for local needs. To simplify tooling and repairs, all of the AUVs' body parts were flat stamped, with no compound curves. The most successful of the AUVs in the Philippines were the Toyota Tamaraw and Ford Fiera. Ford and Toyota combined common chassis cabs with different upfits for specific lines of work, such as farming and fishing.[9] To reach affordability goals, Ford prepared project studies for varied uses and entered a financial arrangement with Citibank to give additional consideration if the applicant would follow the project study.

The other remaining three car manufacturers that were part of the PCMP program made their own AUV to compete in the local market. These included the Mitsubishi Cimmaron (which was largely replaced by the Mitsubishi L300 in the Philippines), DMG/Volkswagen Sakbayan, GM Harabas, Isuzu KC20, and Nissan Bida. The Bida was designed as a fourth-generation Ford Fiera, but as a result of Ford leaving the market in 1984, Nissan bought the rights to the design and sold it as a Nissan. Delta/Toyota also developed a local SUV mainly for military use, the Delta Mini Cruiser.

After the early 1980s financial collapse, 3 PCMP members withdrew, leaving only Nissan and Mitsubishi. The program was considered to be a failure, as stated by then-Prime Minister Cesar Virata. He admitted that since 1975, not one of the five participants in the PCMP had produced a car that could be considered "Made in the Philippines."[13] For example, the Ford Fiera was assembled at Ford Lio Ho Motor in Taiwan, while the Toyota Tamaraw was of Indonesian origin.

Car Development Program (CDP)

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In 1987, the PCMP was replaced by the new Car Development Program (CDP) with lower local parts requirements. The original participants of the program were Mitsubishi, Nissan, and Toyota,[12] who built domestic assembly plants as per the program. In 1990, the addition of the People's Car Program to the CDP paved the way for the entry of new manufacturers such as Honda, Kia, Fiat, and later Proton.[12] Honda locally assembled the Accord, Civic, and CR-V, Fiat assembled the Uno, Kia assembled the Pride, and Proton assembled the Wira and a couple of Volkswagen vehicles for the local market. A Luxury Car Program was also added in 1992 as part of the CDP amendment. It saw the entry of Volvo and BMW, and the re-introduction of Mercedes-Benz. The Volvo 850 and BMW 3 Series (E36) were assembled in the country for a time in the form of semi-knocked down (SKD) kits.[14]

Public Utility Vehicle Modernization Program (PUVMP)

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The Public Utility Vehicle Modernization Program was launched by the Department of Transportation in 2017, with the goal of making the country's public transportation system efficient and environmentally friendly by 2020. The program features ten components, which include regulatory reform, route planning, route rationalization, fleet modernization, industry consolidation, financing, pilot implementation, stakeholder support mechanisms, and communication.[15] The program calls for the phasing-out of jeepneys, buses, and other public utility vehicles (PUVs) that are at least 15 years old and replacing them with safer, more comfortable, and more environmentally-friendly alternatives over the next three years. Manufacturers like Fuso, Hyundai, Isuzu, Hino, Mahindra and Russian brand GAZ have participated to build modern PUVs based on their existing van, truck and bus lineups to replace aging jeepneys.

Comprehensive Automotive Resurgence Strategy (CARS) program

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The CARS program was implemented by the Department of Trade and Industry in order to encourage new car companies to produce vehicles in the Philippines,[16] stimulate demand, impose industry regulations to restore the country's automotive industry, make the country a regional automotive manufacturing hub,[17] and create more jobs in the country. The program was considered unsuccessful, since most car manufacturers see the Philippines as an importer rather than an exporter.[16] Automakers would generally build assembly plants in Thailand, Indonesia, Malaysia, Vietnam, and China owing to lower corporate taxes, operating costs, and minimum wages. There are more major parts suppliers with facilities in these countries, making importing parts from the Philippines unnecessary.[16]

So far, only two Japanese car manufacturers, Mitsubishi and Toyota, have taken part in the program. The program was intended for three manufacturers, but no other automaker has taken up the third position.[18] Mitsubishi was approved as a CARS program participant in 2016[19] and announced the local production of the Mirage and Mirage G4 in 2017.[20] Toyota Motor Philippines has been manufacturing the Toyota Vios since 2007 and enrolled the facelifted Yaris ATIV-based Vios to be locally manufactured. Both manufacturers have a production target of 200,000 vehicles within 6 years.

Prices of cars imported from Indonesia or Thailand have been reported to be much lower compared to a locally assembled car, as unlike Thailand, the Philippines did not impose tax incentives on locally built cars until the CARS program. In 2019, 4 out of every 5 cars sold were CBU imports, and only about 20% of vehicles were locally assembled.[16] Ford closed their Philippine assembly plant in 2012, followed by Honda in 2020 and Nissan in 2021, while Isuzu ceased local production of their D-Max in 2019.

Safeguard Measures Act

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In 2021, the Department of Trade and Industry enacted laws on automobile import safeguards in a bid to protect the domestic automobile business. These laws were in response to the petition filed by the Metal Workers Alliance of the Philippines asking for safeguard measures against the dominance of fully imported automobiles.[21] Many car manufacturers have shown concern that import tariffs would hurt the local car industry, as it relies heavily on imported cars from other countries. Exemptions are granted for locally assembled vehicles, vans and commercial vehicles with a seating capacity of over 10, electric vehicles, and most luxury cars.[22] DTI Secretary Ramon Lopez announced that the country would start imposing a 70,000 PHP ($1,460) tariff on passenger cars and a 110,000 PHP ($2,262) tariff on light commercial vehicles.[23] Cars from Thailand, the US, Japan, and Europe are subject to these tariffs, though cars from some countries like China, South Korea, Malaysia, and parts of Indonesia are exempt.

However, on August 6, 2021, the imposition of safeguard duty on imported vehicles was suspended, as the Tariff Commission determined that there was no surge in complete vehicle imports. Given that completely built passenger cars and light commercial vehicles were not imported in greater quantities during the investigation period, the Commission closed its formal investigation and recommended that no safeguard measure be imposed on imports of CBU passenger cars, and light commercial vehicles under examination will not face any definitive general safeguard measures. Once the order is published, it will be transmitted to the Department of Finance, which will then direct the Bureau of Customs to lift the DTI's safeguard measures.[24] The decision to lift the DTI's safeguard restrictions on imported cars, which account for the vast majority of vehicles sold in the Philippines, has been expected to significantly help the industry recover.[25] While the implementation is waiting for full effect, car dealerships across the country will return cash deposits paid by consumers who purchased imported vehicles during that time period.

Active manufacturers

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Notable Filipino vehicle manufacturers include Sarao Motors and Francisco Motors Corporation.[26]

As of February 2021, there are 58 official car brands in the country.

BMW

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A BMW dealership in the Philippines

Between 1994 and 1997, the BMW 3 Series (E36) was assembled locally in the form of SKD kits. BMW Philippines is currently an owned subsidiary of San Miguel Corporation, and is the official importer and distributor of BMW vehicles in the country.

Ford

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Ford's history in the Philippines can be traced back to 1929. Ford Philippines, Inc. (FPI) was established as a subsidiary of the Ford Motor Company in 1967 and began production operations on May 3, 1968. Ford left the market in 1984 due to the local economic recession, returning in 1997 as Ford Group Philippines, Inc. (FGPI). Ford built a manufacturing plant that opened in September 1999. During its lifetime, the plant produced both Ford and Mazda products like the Ford Lynx, Ford Escape/Mazda Tribute, Ford Focus, Mazda3, and the Mazda-based Ford Ranger, not only for the local market but also neighboring countries such as Indonesia, Vietnam, Thailand, Malaysia, and Singapore.[27] The plant closed down in 2012. Since then, Ford Group Philippines imports its vehicles, mostly from Thailand and the United States.

Ford Philippines also used to sell Lincoln cars in the Philippines. Their former plant in Santa Rosa, Laguna is now owned by Mitsubishi Motors Philippines.

General Motors

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Chevrolet’s operation in the country is currently under the control of The Covenant Car Company, Inc. (TCCCI). GM entered a partnership with TCCCI, appointed by GM Southeast Asia as an independent and exclusive importer and distributor of Chevrolet automobiles and parts in the country. TCCCI was officially incorporated on July 1, 2009, and assumed business operations on October 1 that year. They launched GM Philippines, Inc. on December 1, 2014.[28] Most of the cars in Chevrolet's lineup were imported from Thailand, the US, and South Korea. Prior to that, Yutivo Corporation was responsible for the production and manufacturing of General Motors products in the country. Originally founded in 1887, Yutivo was in charge of assembling Chevrolet, Opel, Holden, Vauxhall, Buick, and Isuzu cars and trucks for the country.[29] They became a spare parts distributor for General Motors in the country back in 1940. Yutivo started assembly operations in 1953 and stayed in business until 1976.[30]

General Motors also built two AUVs in the Philippines, the GM Amigo/Tiger and the GM Harabas. These used the underpinnings of the Bedford HA and a 1256 cc Vauxhall inline-four engine. The Harabas was a four-door station wagon (mainly used as a taxi) and replaced the basic Amigo/Tiger truck.[31]

Honda

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Honda Cars Philippines Inc. (HCPI) was established in October 1990. Under the Philippine government's Car Development Program, production operations commenced in February 1992 in their Santa Rosa, Laguna plant. As of 2020, HCPI had over 600 associates working with 38 dealers nationwide, and about 60 parts and materials suppliers. In March 2020, HCPI announced that it would cease production operations at its plant in Santa Rosa, marking an end to 27 years of production in the Philippines.[32] Since then, Honda cars have been imported from nearby Southeast Asian countries like Thailand and Indonesia.

Hyundai

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Hyundai first entered the Philippine market with the Excel compact car and the Grace van in the early 1990s, later introducing the Starex and the second-generation Elantra towards the end of the decade. Their assembly plant in Santa Rosa, Laguna currently produces the Accent, H-100, and the H350. As of June 2022, there are 39 dealerships around the country, a number expected to increase to 44 by the end of the year.[33] Hyundai Asia Resources, Inc. (HARI) currently focuses on jeepneys, trucks, and buses, while Hyundai Motor Philippines, Inc. (HMPH) focuses on cars, SUVs, and passenger vans.

HARI was appointed by Hyundai in 2001 as the distributor of Hyundai passenger cars in the Philippines, and is currently the official distributor of Hyundai commercial vehicles in the country.[34] Formerly the third most successful foreign division in the Philippine automotive industry, HARI abandoned passenger car sales amidst the COVID-19 pandemic, damaging their reputation and hurting sales elsewhere. In late 2020, they launched Changan Motor Philippines, Inc. (CMPI) and became the official distributor of Changan vehicles in the country.[35] HARI expects sales to be boosted by its Hyundai Modern Jeepneys, which are made to replace older jeepneys as part of the Public Utility Vehicle Modernization Program.

HMPH is currently the official distributor of Hyundai passenger cars in the country after taking over from HARI in early 2022.[36] Audrey Byun is the CEO, while Lee Dong-wook is the President and Victor Jose Vela is the Deputy General Manager of the company.[37][38] HMPH started operations on June 1, 2022[39] and unveiled 4 new models (the Creta subcompact crossover, the Tucson compact crossover, the Santa Fe mid-size crossover, and the Staria passenger van) through a dealer conference on June 20, 2022.[40][41] Sales of these cars began in July 2022.[42]

Isuzu

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Isuzu's Philippine debut came in the 1950s through its line of trucks. In 1972, General Motors and Isuzu formed a joint venture during the 1970s to create GM Philippines. In 1989, Isuzu Motors Pilipinas became a subsidiary of Isuzu Motors Ltd. Since 1995, it was renamed Isuzu Philippines Corporation. Aside from trucks, it also produced SUVs, MPVs, and pick-up trucks such as the Trooper, Hi-Lander (and later, the Crosswind), Fuego, and the D-Max. The company has been exclusively making trucks as they have discontinued producing passenger vehicles, discontinuing the production of the Crosswind in 2017,[43] and the locally made D-Max in 2019,[44] meaning the D-Max would now be imported from Thailand.

Kia

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Kia Motors began its operation in the Philippines in May 1994 under management of the Columbian Autocar Corporation. It assembled the Kia Pride hatchback and sedans as part of the Car Development Program. It also assembled the Kia Ceres (and the later Kia Besta vans), and the Pregio. Since 2019, Kia Philippines has been managed by the Ayala Corporation.[45]

Mazda

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Mazda was introduced into the Philippines during the 1970s by Francisco Motors Corporation and in 1993 by the Columbian Autocar Corporation. Francisco Motors manufactured the fourth generation B-series pickups and the E-2000 vans until the late 1990s. Under Columbian Autocar, it assembled the 7th and 8th generations of the Mazda 323 (In which both generations were sold alongside each other). In the 2000s, the Mazda3 and the Mazda Tribute were assembled at Ford's Santa Rosa plant under a partnership with Ford Motor Company. Bermaz Auto Philippines is the current importer and distributor of Mazda vehicles in the country and has its own warehouse for storing vehicles located in Cabuyao, Laguna.[46]

Mercedes-Benz

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Mercedes-Benz was established in the 1990s under the Luxury Car Program. Prior to that, the brand had been in the country since the 1950s, assembling the Mercedes-Benz Ponton, W110, W114/W115 and the W123 locally.[14] Currently, Auto Nation Group, Inc. (formerly known as CATS Motors, Inc.) is the general importer and distributor of Mercedes-Benz vehicles, parts and accessories in the Philippines. Its history traces back to 1989 when its founder Felix R. Ang opened CATS as a car accessories, tires sales and servicing business. In 1991, Mercedes-Benz appointed CATS Motors as an authorized workshop in the Philippines, and eventually as a dealer in 1993. Auto Nation Group is also responsible for selling Chrysler, Dodge, Jeep, and RAM vehicles in the country.

Mitsubishi

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MMPC's former plant in Cainta, Rizal

Mitsubishi Motors Philippines was originally established as Chrysler Philippines Corporation in 1963, as the assembler and distributor of Chrysler, Dodge and Plymouth cars in the country. The company was incorporated in 1987 as Philippine Automotive Manufacturing Corporation (PAMCOR). In 1996, the company was renamed Mitsubishi Motors Philippines Corporation (MMPC). Its former assembly plant is located in Cainta, Rizal, operating from 1963 to 2014. Since 2015, its current plant is located in Santa Rosa, Laguna.

In April 2022, MMPC began exporting of the Philippine-made L300 to other Southeast Asian markets.[47]

Nissan

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Nissan started in 1969 with the appointment of Universal Motors Corporation (UMC) as the authorized assembler and distributor of Datsun cars and pickups in the country. In 1983, Nissan Motor Company established Pilipinas Nissan, Inc. (PNI) to assemble and distribute Nissan passenger cars. The company was renamed Nissan Motor Philippines, Inc. (NMPI) in 1991. In September 2000, Yulon Motor Co. took control of NMPI from Nissan Motor Company. Since 2013, the brand has been under direct control of Nissan Motor Co, under Nissan Philippines Inc. (NPI). In 2021, Nissan Philippines announced that it will shut down its Santa Rosa plant by March.[48]

Subaru

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In 1996, Columbian Autocar Corporation introduced Subaru to the Philippine market. The brand later withdrew in 2000 due to poor sales but later returned in 2006 under new management. The current official importer and distributor of Subaru vehicles is Motor Image Pilipinas Inc, a subsidiary of Tan Chong International.

Toyota

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A Toyota dealership in the Philippines

Established on August 3, 1988, Toyota Motor Philippines is a subsidiary of Toyota Motor Corporation, based in Santa Rosa, Laguna, Philippines. They are responsible for the assembly and distribution of Toyota vehicles in the Philippines since 1988. Since 2009, TMP has also been the official distributor of Lexus cars in the country, operating a dealership in Manila. TMP is the largest automotive company in the country, with the widest vehicle line-up and a sales distribution and service network composed of 72 dealerships nationwide. Prior to that, Toyota vehicles were being sold in the country since 1962 by Delta Motors Corporation. They were responsible for assembling and distributing Toyota vehicles for the Philippine market. Delta Motor Corporation collapsed in 1984, during the Philippine economic downturn of the early 1980s, which meant Toyota was not present in the market for four years.

Defunct manufacturers

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Daewoo

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Daewoo sold moderately in the country until it was forced to pull out due to the Asian Economic Crisis, which led to its bankruptcy and acquisition by GM. Today, many of their cars are sold under the Chevrolet brand. Daewoo Bus still operates and manufactures buses in the country.

Daihatsu

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A Daihatsu Feroza in the Philippines.

The Daihatsu Feroza was considered a status symbol during its release in the late 1980s, while the Hijet was a popular taxicab. The Daihatsu Charade was also a popular hatchback in the 1990s. Despite its absence, some of their cars today are sold under the Toyota brand. Cars like the Toyota Rush and the Toyota Wigo were originally Daihatsu models, built in Indonesia.

Fiat

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Despite being a bestseller worldwide, the Fiat Uno sold poorly in the country. In mid-2018, Abarth was introduced into the Philippine market selling the Abarth versions of the Fiat 500. Petromax Enterprises, the distributors of the newly introduced brand in the local market, also reintroduced Alfa Romeo into the market, which was last seen in the 1990s.

Lincoln

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A parked Lincoln Town Car.

From 1998 to 2002, Ford Philippines offered the Lincoln Town Car and sold it through its dealerships. It became popular among limousine operators and funeral homes who often converted them into hearses. Currently they import the Lincoln Navigator via grey market.

Opel

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Opel, along with Ford, were the two most popular non-Japanese car companies in the 1960s and 1970s. However, the company pulled out of the country after Martial Law was imposed by the Marcos Administration. Opel returned to the Philippines in the mid-1990s with the Astra, Vectra, and Omega, with good sales as a cheap alternative to Japanese cars but was taken out of the country to make way for Chevrolet's then-brand-new line up (which basically replaced all the cars Opel was selling). An example of this is the Chevrolet Zafira. Despite being an Opel-based car, it was sold alongside the Opel Astra until the brand's discontinuation in the country. Opel Vectras and Astras are still a common sight to see on the roads of Manila, with the Opel Tigra and the Opel Manta is popular among enthusiasts.

Proton

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A Proton Wira in Metro Manila.

The Malaysian firm Proton only sold the Wira[49][50] before the Asian Economic Crisis forced them out of the country.

Renault

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In the late 1970s, some Renault models were imported into the country. In 1996, a dealership in Metro Manila imported several Renault models. It failed to succeed as it was deemed too expensive.[citation needed]

Smart

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The lightweight Smart ForTwo city car was supposed to be ideal for Manila's congested roads but failed due to its relatively high price. It remained slightly popular with companies who used them for advertising. The ForTwo and the Roadster were both sold by CATS Motors.

SsangYong

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In the 1990s, SsangYong became popular for their Musso SUV and the Istana-based MB100 van – both of which were marketed as Mercedes-Benz vehicles. The brand pulled out of the Philippine market in 2012. In January 2016, Ssangyong came back into the Philippine Market with their new distributor, Berjaya Group Malaysia.[51]

Vauxhall and Holden

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The Torana was largely replaced by the Isuzu Gemini.

Vauxhall also made cars in the local market during the 1960s. Cars they have sold locally include the Vauxhall Viva and the Vauxhall Victor.

The Australian car manufacturer Holden also assembled a couple of cars in the country during the 1960s and the 1970s, with the Holden Torana being one of the most popular models.

Volkswagen

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Domingo M. Guevarra Sr and his company, DMG Inc. was responsible for importing, producing, and assembling Volkswagens in the Philippines. The Volkswagen Kombi, Beetle and Brasilia were some of the models built by DMG.[14] DMG was also known for its DMG-Volkswagen Sakbayan, their attempt to build a national car, based on the Australian Volkswagen Country Buggy. DMG went bankrupt in the mid-80s. Volkswagen later came back in the 1990s, selling the Volkswagen Polo Classic from 1996 until 1999. The Polo Classic, alongside the Caravelle, was locally assembled in Alaminos.[52] In 2013, Volkswagen returned to the Philippine market with the partnership of Ayala Corporation.

In 2018, Volkswagen PH discontinued their international models such as the Jetta, Passat and the Golf GTS in favor of Chinese-sourced models like the Santana, Lavida, and Lamando as part of the new ASEAN-China Free Trade Agreement.[53] The reason for the shift was to reduce tax imposed on the cars by 5%.[54] The decision sparked negativity to the brand, mostly contributed by the South China Sea Arbitration, with Volkswagen reporting low sales in the country - only 177 cars were sold in 2019.[55] Felipe Estrella III, the president of Volkswagen Philippines, emphasizes that "regardless of the source, the product is the same".[56] The Multivan Kombi that was launched in the Philippines in July 2021, until its discontinuation from the market, was the only non-SAIC Volkswagen product in its lineup.

On September 18, 2025, the Ayala Group of companies, Volkswagen's exclusive distributor in the Philippine market, announced the cessation of their partnership, and with that the distribution of Volkswagen vehicles in the country.[57]

Imported vehicles (Grey market)

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A GMC Yukon XL in the Philippines. GMC vehicles were never officially available in the country. While its counterpart, the Chevrolet Suburban is officially sold in the market.

Specialty dealerships across the country import various new vehicles from several countries such as South Korea, the US, and the UAE. In some cases, select authorized dealerships may also use indent orders to import vehicles or trims that are not part of their official inventory. As an example, Ford sold the Lincoln Navigator to a select group of buyer's years after the Lincoln brand had been phased out of the market.[58] Some brands can only be acquired through grey import dealers such as Hummer and Cadillac. Due to the popularity of the Cadillac Escalade in the grey import market, GM Philippines considered bringing the brand to the Philippine market,[59] but realized that it would likely fail due to the competitive market for luxury SUVs. US-Market Toyotas such as the Sienna are also imported into the country, as well as the J70 Series Land Cruiser from the Middle East. Despite a Genesis G90 being shown at MIAS in 2017,[60] most Genesis vehicles in the country are sold by grey importers.

In addition, many pre-owned vehicles are imported from Japan, or Hong Kong – countries that use right-hand-drive vehicles on the left side of the road. Because right-hand-drive vehicles are banned in the country, they are converted to left-hand-drive in conversion bays and freeport zones in Subic, Santa Ana, and Toledo. These vehicles are seen with plate numbers R for Subic (Central Luzon), B for Cagayan (Cagayan Valley), K for Cagayan De Oro (Northern Mindanao), and Y for Cebu (Central Visayas). Smuggling of used cars is rampant, with as many as sixty percent of registrations being of cars not officially imported.[61]

Vehicle smuggling

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President Rodrigo Duterte inspecting the smuggled vehicles before they were destroyed at Port Irene in Sta. Ana, Cagayan

The country made headlines in 2007 when president Gloria Macapagal Arroyo ordered the immediate destruction of 18 luxury vehicles that were illegally smuggled into the country. The cars, which included four BMWs and a Lincoln Navigator, were crushed by backhoes and other heavy construction vehicles at a depot in the Freeport Zone.[62]

Since 2018, there have been a series of public destruction of contraband luxury vehicles under the order of President Rodrigo Duterte as part of an anti-corruption movement in the government. The Bureau of Customs have destroyed illegally smuggled cars worth millions of dollars using backhoes and bulldozers. Cars included Mercedes-Benzes, BMWs, Alpinas, Ferraris, Jaguars, Lamborghinis, Porsches, a C3 Corvette Stingray. The most recent one being a Mclaren 620R. The car was seized in Port of Manila in 2020 and was destroyed a year later in June 2021 along with other vehicles.[63][64]

Politicians have shown concerns about the destroyed vehicles. Senator Koko Pimentel has suggested that the seized luxury cars should be auctioned to foreign buyers and collectors rather than destroying them, and the profits would then be used to help victims of natural disasters in the Philippines.[65]

Vehicles currently manufactured in Philippines

[edit]

Toyota: Innova, Vios, Hilux Tamaraw

Mitsubishi: L300, Mirage, Mirage G4
Fuso: Fuso Canter, Fuso FK/FL/FM, Fuso FI, Fuso FJ, Rosa, Fuso FP/FV

Hyundai: H-100
Hyundai Trucks and Buses: Xcient, Super Aero City, Universe

Kia: K2500

Foton: Thunder, View Ambulance, View Transvan, View Traveller, Toano, Gratour MT, Gratour TM, Harabas TM 300, Tornado, Auman Series Trucks

Isuzu Trucks: C/E-Series, F-Series, N/Q-Series
Isuzu Buses: PABFVR34P, PABFTR33P, LV123, LV423, Mini Bus

Hino Trucks: 300 Series, 500 Series, 700 Series
Hino Buses: RC421(ER200), RF821(EK100), RM2KSS (K13D), RK3HS (H07D), RK1JMT (J08C-TK), RK1JST (J08C-TK), RM2PSS (P11C-TH), RU2PSS (P11C-TE), RK8JMUA (J08E-UB), RK8JSUA (J08E-UB), RN8J (J08E-UB), FB2W, FB4J, FC3J, FC9JL7A (J05E-TY), FF3H (H06D)AK174, (EH700)AK176 (EH700), FG8JPSB (J08E-UG), FG1JPUB (J08C-F), FG1JPUZ (J08C-TT), FG8JPUB (J08E-UG), FG8JP7A (J08E-WF), HT223A (M10U), HT225A (M10U), SH2P, SH1E, SS2P, SS1E

JMC: Vigus, Transporter, Compadre, N700, N720

Daewoo Bus: BV115, BF106, BS106, BH117H, BS120S

Dongfeng: Captain E, Captain N, Captain D9, KD6Z, K04U, K47H, K23W, KW46, TW37, K37F

MAN: TGS, CLA, Lion's Chassis, Lion's City, Lion's Intercity

Statistics

[edit]

Historical sales rank

[edit]
Top 10 best-selling vehicles in the Philippines, 1995–2025
Source: BSCB[66]
AutoIndustriya.com[67][68][69][70][71][72][73][74][75][76]
Year Models and ranking
1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th
1995 Toyota Corolla Toyota Tamaraw FX Nissan Sentra Mitsubishi Lancer Toyota Corona Toyota Crown Mitsubishi Galant Toyota LiteAce Mitsubishi L300 Isuzu KB/Fuego
1996 Toyota Corolla Honda Civic Toyota Tamaraw FX Mitsubishi Lancer Toyota Corona Mitsubishi L300 Mitsubishi Galant Toyota LiteAce Toyota Crown Isuzu KB/Fuego
1997 Toyota Corolla Toyota Tamaraw FX Mitsubishi Lancer Toyota Corona Nissan Sentra Mitsubishi Galant Nissan Cefiro Isuzu KB/Fuego Toyota LiteAce Isuzu Hi-Lander
1998 Toyota Corolla Honda Civic Mitsubishi Adventure Mitsubishi Lancer Nissan Sentra Isuzu Hi-Lander Kia Besta Honda CR-V Toyota Revo Toyota Tamaraw FX
1999 Toyota Revo Honda Civic Toyota Corolla Mitsubishi Adventure Nissan Sentra Honda CR-V Toyota Camry Isuzu Hi-Lander Mitsubishi Lancer Mitsubishi Pajero
2000 Toyota Revo Mitsubishi Adventure Honda Civic Toyota Corolla Isuzu Hi-Lander Nissan Sentra Exalta Honda City Toyota HiAce Honda CR-V Nissan Frontier
2001 Toyota Revo Mitsubishi Adventure Isuzu Hi-Lander/Hi-Lander Crossiwind Toyota Corolla/Corolla Altis Honda Civic Nissan Sentra Exalta Mitsubishi Lancer Honda City Nissan Frontier Mitsubishi Pajero
2002 Toyota Revo Isuzu Hi-Lander Crosswind Honda CR-V Mitsubishi Adventure Toyota Corolla Altis Toyota Camry Isuzu Hi-Lander Crosswind Nissan Sentra Exalta Ford Lynx Mitsubishi Lancer
2003 Toyota Revo Honda CR-V Toyota Corolla Altis Mitsubishi Adventure Ford Escape Toyota Camry Isuzu Hi-Lander Crosswind Ford Lynx Mitsubishi Lancer Toyota Vios
2004 Toyota Revo Toyota Corolla Altis Isuzu Hi-Lander Crosswind Mitsubishi Adventure Toyota Camry Ford Escape Toyota Vios Nissan Sentra Mitsubishi Lancer Ford Lynx
2005 Toyota Innova Toyota Vios Mitsubishi Adventure Isuzu Crosswind Toyota Corolla Altis Toyota Fortuner Toyota Camry Ford Escape Mitsubishi Lancer Nissan Sentra
2006 Toyota Innova Toyota Vios Toyota Fortuner Isuzu Alterra Mitsubishi Adventure Mitsubishi L300 Honda Civic Isuzu Crosswind Toyota Corolla Altis Toyota Camry
2007 Toyota Innova Toyota Vios Mitsubishi Adventure Toyota Fortuner Toyota Avanza Isuzu Crosswind Toyota Hilux Isuzu D-Max Mitsubishi L300 Honda Civic
2008 Toyota Vios Toyota Innova Toyota Fortuner Toyota Avanza Isuzu Crosswind Honda Civic Mitsubishi Adventure Toyota Corolla Altis Honda City Mitsubishi L300
2009 Toyota Vios Toyota Innova Honda City Mitsubishi Montero Sport Toyota Fortuner Isuzu Crosswind Honda Jazz Honda Civic Toyota Hilux Toyota Corolla Altis
2010 Toyota Vios Toyota Innova Mitsubishi Montero Sport Honda City Toyota Fortuner Toyota Hilux Honda Civic Toyota Corolla Altis Honda Jazz Mitsubishi L300
2011 Toyota Vios Toyota Innova Mitsubishi Montero Sport Toyota Fortuner Toyota Hilux Honda City Honda Jazz Isuzu Crosswind Honda Civic Toyota Corolla Altis
2012 Toyota Vios Toyota Innova Mitsubishi Montero Sport Toyota Fortuner Toyota Hilux Toyota Avanza Honda City Honda Jazz Toyota Corolla Altis Isuzu Crosswind
2013 Toyota Vios Mitsubishi Montero Sport Toyota Innova Toyota Fortuner Toyota Avanza Mitsubishi Mirage Toyota Hilux Honda City Isuzu Crosswind Toyota Corolla Altis
2014 Toyota Vios Toyota Fortuner Mitsubishi Montero Sport Toyota Innova Toyota HiAce Toyota Wigo Ford Ranger Toyota Avanza Honda City Toyota Hilux
2015 Toyota Vios Toyota Innova Toyota HiAce Toyota Fortuner Toyota Wigo Mitsubishi Montero Sport Mitsubishi Mirage G4 Isuzu MU-X Honda City Toyota Hilux
2016 Toyota Vios Toyota Fortuner Toyota HiAce Toyota Wigo Toyota Innova Toyota Avanza Mitsubishi Mirage G4 Isuzu MU-X Ford Everest Toyota Hilux
2017 Toyota Fortuner Toyota Vios Toyota Innova Toyota HiAce Mitsubishi Montero Sport Toyota Wigo Hyundai Accent Toyota Avanza Toyota Hilux Mitsubishi L300
2018 Toyota Vios Toyota Fortuner Toyota Wigo Toyota Hilux Toyota Innova Toyota HiAce Mitsubishi Montero Sport Nissan Navara Hyundai Accent Mitsubishi Mirage G4
2019 Toyota Vios Toyota Hilux Toyota Innova Toyota Fortuner Mitsubishi Xpander Nissan Navara Toyota HiAce Toyota Wigo Mitsubishi Mirage G4 Toyota Rush
2020 Toyota Vios Toyota Hilux Toyota Wigo Toyota Innova Mitsubishi Xpander/ Xpander Cross Toyota Hiace Toyota Rush Ford Ranger Nissan Navara Mitsubishi Mirage G4
2021 Toyota Vios Toyota Hilux Toyota Wigo Toyota Innova Toyota Fortuner Toyota Rush Mitsubishi Xpander/Xpander Cross Toyota HiAce Mitsubishi L300 Nissan Navara
2022 Toyota Vios Toyota Hilux Toyota Innova Toyota Fortuner Mitsubishi Xpander/Xpander Cross Toyota Rush Toyota Wigo Toyota Raize Toyota HiAce Ford Ranger
2023 Toyota Vios Toyota Hilux Mitsubishi Mirage G4 Mitsubishi Xpander/Xpander Cross Toyota Raize Toyota Innova Toyota Hiace Toyota Wigo Toyota Fortuner Toyota Veloz
2024 Toyota Vios Toyota Hilux Mitsubishi Mirage G4 Mitsubishi Xpander/Xpander Cross Toyota Wigo Toyota Raize Toyota Innova Toyota Avanza Toyota Hiace Mitsubishi L300
2025 Mitsubishi Xpander/Xpander Cross Toyota Vios Toyota Avanza Toyota Hilux Toyota Hiace Toyota Wigo Toyota Raize Mitsubishi Mirage G4 Toyota Tamaraw Toyota Innova
1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th
  Locally built vehicles     Imported vehicles
Note: 1. The Sentra Exalta from the 2000 model year is based on the B14 Sentra, while the 2001 model year is now a rebadged Nissan Bluebird Sylphy.
2. The Corolla E110 and the Corolla Altis share the same ranking in 2001, as both models were sold together until 2004.
See also : Best-selling models in

Sales by brand

[edit]
2025[77]
Rank Brand Sales Market share
1 Toyota 227,595 46.21%
2 Mitsubishi 86,808 17.62%
3 BYD 26,122 5.30%
4 Suzuki 21,984 4.46%
5 Ford 21,784 4.42%
6 Nissan 20,571 4.18%
7 Isuzu 17,237 3.50%
8 Honda 16,257 3.30%
9 Hyundai 10,475 2.13%
10 MG Motor 8,715 1.77%
others 35,010 6.99%
Total 492,558 100%
2024[78]
Rank Brand Sales Market share
1 Toyota 215,756 45.41%
2 Mitsubishi 89,124 18.76%
3 Ford 27,997 5.89%
4 Nissan 26,774 5.64%
5 Suzuki 20,371 4.29%
6 Isuzu 17,641 3.71%
7 Honda 15,518 3.27%
8 Hyundai 12,023 2.53%
9 MG Motor 9,016 1.90%
10 Kia 6,692 1.41%
others 34,182 7.21%
Total 475,094 100%
2023[79]
Rank Brand Sales Market share
1 Toyota 198,188 44.90%
2 Mitsubishi 78,731 17.75%
3 Ford 31,320 7.10%
4 Nissan 27,136 6.15%
5 Suzuki 18,454 4.18%
6 Isuzu 17,639 3.99%
7 Honda 13,923 3.77%
8 Hyundai 9,130 2.07%
9 Geely 6,852 1.55%
10 MG Motor 5,679 1.29%
others 34,356 7.78%
Total 441,408 100%
2022[80]
Rank Brand Sales Market share
1 Toyota 173,245 46.56%
2 Mitsubishi 53,211 14.30%
3 Ford 24,710 6.64%
4 Nissan 21,222 5.70%
5 Suzuki 19,942 5.36%
6 Isuzu 17,639 4.74%
7 Honda 13,923 3.74%
8 Geely 9,302 2.50%
9 MG Motor 8,858 2.38%
10 Kia 5,012 1.35%
others 25,019 6.72%
Total 372,083 100%
2021[81]
Rank Brand Sales Market share
1 Toyota 129,101 43.88%
2 Mitsubishi 38,436 13.06%
3 Ford 20,004 6.80%
4 Nissan 19,603 6.66%
5 Suzuki 19,391 6.59%
6 Isuzu 14,424 4.90%
7 Honda 12,680 4.31%
8 Hyundai 9,061 3.08%
9 MG Motor 6,343 2.16%
10 Geely 6,104 2.07%
others 19,076 6.46%
Total 294,223 100%
2020[82]
Rank Brand Sales Market share
1 Toyota 99,545 40.11%
2 Mitsubishi 37,366 15.06%
3 Nissan 21,751 8.76%
4 Hyundai 16,651 6.71%
5 Suzuki 15,515 6.25%
6 Ford 14,775 5.95%
7 Honda 11,711 4.72%
8 Isuzu 11,240 4.53%
9 MG Motor 3,432 1.38%
10 Foton 2,456 0.99%
others 13,729 5.51%
Total 248,171 100%
2019[83]
Rank Brand Sales Market share
1 Toyota 161,385 38.74%
2 Mitsubishi 64,065 15.38%
3 Nissan 42,694 10.25%
4 Hyundai 33,762 8.10%
5 Suzuki 23,918 5.74%
6 Ford 21,900 5.26%
7 Honda 20,338 4.88%
8 Isuzu 13,971 3.35%
9 MG Motor 5,085 1.22%
10 Kia 5,019 1.20%
others 24,382 5.85%
Total 416,627 100%
2018[84]
Rank Brand Sales Market share
1 Toyota 152,389 37.93%
2 Mitsubishi 66,081 16.45%
3 Hyundai 35,401 8.81%
4 Nissan 34,952 8.70%
5 Ford 23,571 5.87%
6 Honda 23,294 5.80%
7 Suzuki 19,740 4.91%
8 Isuzu 13,971 4.16%
9 Foton 5,085 1.03%
10 Chevrolet 4,293 1.0%
others 21,488 5.39%
Total 401,803 100%
2017[85]
Rank Brand Sales Market share
1 Toyota 182,657 38.54%
2 Mitsubishi 71,001 14.98%
3 Hyundai 37,678 7.95%
4 Ford 36,623 7.73%
5 Honda 31,758 6.77%
6 Isuzu 30,086 6.35%
7 Nissan 24,995 5.27%
8 Suzuki 19,263 4.06%
9 Chevrolet 5,949 1.26%
10 Mazda 5,247 1.11%
others 28,686 6.06%
Total 473,943 100%
2016[86]
Rank Brand Sales Market share
1 Toyota 158,058 39.12%
2 Mitsubishi 59,480 14.72%
3 Hyundai 33,695 8.34%
4 Ford 33,688 8.34%
5 Isuzu 27,361 6.77%
6 Honda 23,199 5.74%
7 Nissan 16,897 4.18%
8 Suzuki 14,353 3.55%
9 Kia 7,304 1.81%
10 Chevrolet 5,931 1.47%
others 24,085 5.94%
Total 404,051 100%

See also

[edit]
[edit]
  • Wikimedia Commons logo Media related to Automotive industry in the Philippines at Wikimedia Commons

References

[edit]
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