# Philippines Used Car Market 2026 | Industry Size, Share, Growth and Outlook by 2034

## Market Overview

The [Philippines used car market reached a size](https://www.imarcgroup.com/philippines-used-car-market) of **1.3 million units** in 2025 and is projected to grow to **2.1 million units** by 2034. The market is expected to expand with a **CAGR of 5.19%** during the forecast period of 2026–2034. Growth is driven by government policies that ease vehicle imports and boost domestic manufacturing, alongside the rise of digital marketplaces offering car condition reports and easy financing.

## How AI is Reshaping the Future of Philippines Used Car Market:

• AI-powered platforms are enhancing buyer confidence by offering detailed car condition reports and certified inspections, reducing purchase risks.

• Machine learning algorithms optimize pricing strategies, ensuring competitive and transparent pricing in online digital marketplaces.

• Government schemes like the Automotive Industry for Competitiveness Enhancement (RACE) program support automotive manufacturing, indirectly benefiting AI-enabled used car sales platforms.

• AI-driven analytics improve market demand forecasting and inventory management for vendors, enabling efficient sales channel operations.

• Online used car financing initiatives, supported by fintech startups, leverage AI to streamline credit risk assessments and offer flexible payment plans.

• Leading companies like CarDekho SEA and WowCar are incorporating AI tools to enhance user experience, transparency, and trust in the Philippines used car market.

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## Market Growth Factors

The rising middle-class population and urbanization in the Philippines have significantly fueled demand for affordable and practical mobility solutions, including second-hand vehicles. Economic growth has expanded the middle-class segment that seeks budget-friendly transport options, especially in cities with increasing commuters. This demographic trend supports the used car market as younger, first-time buyers with financial constraints prefer second-hand vehicles due to their affordability and improved financing conditions, contributing to consistent growth in metro and emerging urban areas.

Government support through policies like the Automotive Industry for Competitiveness Enhancement (RACE) program and trade-in incentives have created a favorable environment for the used car market. The RACE initiative, backed by a PHP250 million allocation, encourages local automotive manufacturing and eases vehicle importation, increasing the availability of both new and used cars. Infrastructure improvements and supportive trade-in programs facilitate vehicle upgrades and maintain a steady influx of quality used cars, ensuring a competitive and active market.

The surge of online platforms has transformed the Philippines used car market by providing convenience, transparency, and broader reach. E-commerce marketplaces allow buyers to easily compare numerous vehicles, access car condition reports, and avail financing and delivery services, enhancing customer confidence. For sellers, digital channels offer extensive exposure across the country, boosting demand. The e-commerce sector's estimated growth, including an 11.38% CAGR in the broader online market, underpins the increasing preference for digital transactions in the used car ecosystem.

## Market Segmentation

### 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

### Regional Insights:

• Luzon

• Visayas

• Mindanao

## Key Players

• Automart.Ph

• Car Empire

• Carmax

• Carmudi

• Carousell

• LausGroup of Companies

• Philkotse.com

• Sirqo Group Inc.

• Toyota Motor Philippines Corporation

• Tsikot.com

• Zigwheels

## Recent Development & News

**• March 2025:** Honda Cars Philippines Inc. launched the Honda Certified Plus Program offering certified pre-owned Honda vehicles up to 10 years old or under 100,000 kilometers. This program is active in six dealerships including Honda Cars Makati and Quezon City, enhancing buyer trust and expanding certified used car options.

**• December 2024:** CarDekho SEA raised USD 60 million in equity funding, valuing the company over USD 300 million. This investment supports growth in used vehicle financing for the Philippines and Indonesia, improving accessibility to financing for used car buyers.

**• December 2024:** WowCar launched its platform in the Philippines, focusing on high-quality economy used cars with innovative user experience features aimed at providing a smoother and more transparent used car market.

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