Philippines Used Car Market Size, Trends, Growth & Forecast Report 2025-2033

Philippines Used Car Market Overview

Market Size in 2024: 1.23 Million Units

Market Size in 2033: 2.03 Million Units

Market Growth Rate 2025-2033: 5.30%

According to IMARC Group's latest research publication, "Philippines Used Car Market Size, Share, Trends, and Forecast by Vehicle Type, Vendor Type, Fuel Type, Sales Channel, and Region, 2025-2033," the Philippines used car market size reached 1.23 million units in 2024. Looking forward, IMARC Group estimates the market to reach 2.03 million units by 2033, exhibiting a CAGR of 5.30% during 2025-2033.

How Digital Innovation is Reshaping the Future of the Philippines Used Car Market

• Transforming Government Support: DTI's RACE program provides PHP 9 billion in fiscal support for automotive manufacturers, with PHP 250 million initially allocated in 2025 to establish the Philippines as a regional manufacturing hub and reduce import reliance.

• Accelerating Digital Marketplace Growth: E-commerce platforms are experiencing explosive growth, with the Philippines e-commerce market projected to expand at 11.38% CAGR from 2024-2028, reaching USD 24.8 billion and transforming used car buying experiences.

• Enhancing Trust and Transparency: Digital platforms now offer comprehensive car condition reports, detailed vehicle history documentation, certified pre-owned programs, warranties, and after-sales support, significantly reducing purchase risks and building consumer confidence.

• Expanding Electric Vehicle Adoption: BYD surged 384.3% into 10th place in 2025, leading the EV segment as charging infrastructure expands around malls and highways, accelerating the used electric vehicle market from a small base.

• Enabling Flexible Financing: Online marketplaces provide affordable financing options, low down-payment schemes, and flexible repayment plans, making vehicle ownership accessible to budget-conscious consumers and first-time buyers across all regions.

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Philippines Used Car Market Trends & Drivers:

Government support for the automotive industry is offering favorable market outlook. In February 2025, the Department of Trade and Industry unveiled the Automotive Industry for Competitiveness Enhancement (RACE) program, aimed at enticing automotive firms to establish manufacturing in the Philippines. The 2025 General Appropriations Act allocated PHP 250 million preliminarily, with PHP 9 billion earmarked as fiscal support for participating car makers. Policies easing vehicle importation and promoting local manufacturing result in steady car flow into the market, giving users more options. Government programs encouraging trade-ins make upgrading easier and used cars more accessible. Infrastructure improvement initiatives drive car demand. As new cars become more affordable through incentives, more vehicles circulate, resulting in larger quality used car supply, keeping the market active and competitive.

Online channel expansion is impelling market growth. E-commerce platforms make browsing varied car selections, price comparisons, and deal-finding easier from home, reducing physical car lot visits. Digital marketplaces provide car condition reports, financing options, and delivery services, making processes smoother and transparent. For sellers, these platforms provide greater exposure nationwide. The e-commerce market in the Philippines is anticipated to expand consistently, achieving 11.38% CAGR from 2024-2028, with Gross Merchandise Value rising from USD 14.2 billion in 2023 to USD 24.8 billion by 2028. Consumers have become more confident purchasing online through reviews, ratings, and certifications. Professional inspection and certification services now offer certified pre-owned vehicles passing rigorous quality checks, giving buyers confidence. Detailed vehicle history reports, warranties, and after-sales support reduce perceived risks, shifting consumer perception toward trusted investments.

The Philippines is recording steady economic growth, and the increasing middle-class population demands cheaper, practical mobility solutions. Second-hand vehicles offer affordable alternatives to new cars, particularly in cities where transportation demand is increasing. As more people migrate to urban centers for work or study, personal mobility becomes crucial. Younger workforce consumers are first-time buyers interested in second-hand cars due to financial limitations. Used cars are popular due to affordable prices and better financing conditions. Car ownership is increasingly seen as independence, convenience, and status, especially among younger consumers and growing families. While new cars may be out of reach, used cars offer accessible entry points with wide model ranges, brands, and price points. Growing affordable financing availability, low down-payment schemes, and flexible repayment options boost budget-conscious consumer purchasing power. As aspirations rise and options become attainable, used car sales see steady growth in Tier 2 and Tier 3 cities where public transportation may be limited.

Philippines Used Car Industry Segmentation:

The report has segmented the market into the following categories:

Vehicle Type Insights:

• Hatchbacks

• Sedan

• Sports Utility Vehicle

• Others

Vendor Type Insights:

• Organized

• Unorganized

Fuel Type Insights:

• Gasoline

• Diesel

• Others

Sales Channel Insights:

• Online

• Offline

Breakup by Region:

• Luzon

• Visayas

• Mindanao

Recent News and Developments in Philippines Used Car Market

• February 2025: The Department of Trade and Industry unveiled the RACE (Revitalizing the Automotive Industry for Competitiveness Enhancement) program with PHP 9 billion fiscal support to entice automotive firms to establish manufacturing in the Philippines.

• April 2025: The RACE program began accepting applications from automotive manufacturers, aiming to establish the Philippines as a regional manufacturing hub while reducing import reliance and fostering SME growth in the automotive sector.

• April 2025: Philippine vehicle sales in Q1 2025 reached 117,074 units, demonstrating growth momentum of 6.8% year-over-year, driven by strong consumer demand and improved financing accessibility across all vehicle segments.

• June 2025: The Philippines used car market underwent significant digital transformation, with online platforms integrating advanced vehicle inspection tools, transparent pricing systems, and seamless financing options to enhance consumer trust and purchasing convenience.

• August 2025: BYD emerged as the standout performer in the Philippine automotive market, surging 384.3% into 10th place and leading the EV segment, signaling growing consumer acceptance of electric vehicles and expanding charging infrastructure nationwide.

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players, including Automart.Ph, Car Empire, Carmax, Carmudi, Carousell, LausGroup of Companies, Philkotse.com, Sirqo Group Inc., Toyota Motor Philippines Corporation, Tsikot.com, Zigwheels, and others.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

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