Where eco-friendly meets prestige

Electrification and the Philippine luxury car market

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WHAT FILIPINOS define as a luxury car varies depending on many factors, such as their personal preferences, financial capacity, and lifestyle aspirations.

For some, it's the elegant interior of a sedan with premium leather and a state-of-the-art infotainment system. For others, it is the intimidating exterior of a full-sized sport utility vehicle with powerful performance, cutting-edge safety technology, and the versatility to handle both city streets and provincial roads with ease.

Whatever one's preference might be, it cannot be denied that the luxury market in the Philippines, while still a niche compared to mass-market automotive segments, has become a fixture in the Philippine automotive scene due to the country's strong economic performance, growing affluence, and stronger demand for prestige brands.

Latest data on the Philippine luxury car market saw a notable increase in sales, surging by 37% in 2023, with total sales climbing from approximately 3,208 units in 2022 to 4,396 units the following year. The substantial growth outpaced the overall growth of the automotive industry that year, showing that the appetite for premium car brands in the country is growing. Lexus, BMW, and Mercedes-Benz dominated the segment, collectively selling 3,861 units and accounting for nearly 88% of total luxury car sales.

The same trend can be observed for the global luxury car market. According to online data firm Statista, the luxury car market is anticipated to generate a staggering revenue of $26 billion by the year 2025, with the average price per unit projected to be at around $120,000. Additionally, the firm also forecasts a steady annual growth rate of 0.89% in the next four years, leading to an estimated market volume of US$27 billion by 2029.