Philippine car sales slump as demand remains weak

By Beatriz Marie D. Cruz, Senior Reporter

PHILIPPINE VEHICLE SALES dropped by 8% in June, dragging first semester sales 11.4% lower as weak demand continued to weigh on the market, industry data showed.

A joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) showed auto sales slid to 37,231 units in June from 40,483 units sold in the same month a year ago.

However, month on month, total car sales jumped by 11% from 33,532 units sold in May.

Vehicle sales in June were the highest since December’s 42,870, but the 8% annual drop was the weakest decline since the 6.6% contraction recorded in February.

Including other industry data, CAMPI said vehicle sales reached 42,000 in June, an 18.7% increase from a month ago.

For the January-to-June period, total vehicle sales declined by 11.4% to 204,557 units from 230,912 units sold a year ago.

Passenger car sales dropped by 11.3% to 40,503 units during the six-month period. Commercial vehicle sales slipped by 11.4% to 164,054 units, as all segments showed a decline in sales.

In a statement on Thursday, CAMPI President Jose Maria M. Atienza said he expects vehicle sales to improve in the second half, following the entry of new electric vehicle (EV) and internal combustion engine (ICE) models in the market.

Passenger car sales, which accounted for 21.65% of industry sales, rose by 16.5% to 8,061 units in June from 6,922 units last year. Month on month, sales jumped by 20.5% from 6,692 units.

On the other hand, sales of commercial vehicles, which made up 78.35% of the total, declined by 13.1% to 29,170 units in June from 33,561 a year ago. On a monthly basis, commercial vehicle sales increased by 8.7% from 26,840 units.

Under the commercial vehicle segment, light commercial vehicle sales dropped by 14.9% year on year to 21,709 units in June, while sales of Asian utility vehicles (AUVs) slid by 5.4% to 6,812 units.

Sales of light-duty and medium-duty trucks in June fell by 31.8% and 20.7% to 363 units and 215 units, respectively. On the other hand, sales of heavy-duty trucks in June increased by 22.4% to 71 units.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said vehicle sales in June declined as high borrowing costs and geopolitical uncertainty have made households more selective about discretionary spending.

“The annual decline likely reflects a higher base last year, continued caution among consumers amid elevated borrowing costs and living expenses, and some uncertainty affecting big-ticket purchases,” he said in a Viber message.

Mr. Rivera noted that the month-on-month improvement in vehicle sales was likely driven by midyear promotions offered by car companies, as well as improved vehicle availability.

For the second half, he expects vehicle sales to post modest growth, but global uncertainties will likely weigh on consumer confidence and financing conditions.

“For the rest of 2026, car sales are likely to post modest growth, supported by easing inflation, a gradually improving interest rate environment, and sustained economic activity,” Mr. Rivera said.

Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said he expects a gradual recovery in auto sales for the rest of the year.

“Looking ahead, lower inflation, easing interest rates, and steady remittances should support a gradual recovery in auto sales during the second half, although buyers will likely remain price-sensitive amid renewed geopolitical risks,” he said in a Viber message.

EV SALES STRONG
Meanwhile, EV sales remained strong in June as supply grew more stable, Mr. Atienza said.

According to CAMPI and TMA data, total EV (xEV) sales more than doubled to 6,995 units in June from the 3,057 units sold in the same month last year.

The segment, which includes battery EV (BEV), plug-in hybrid EV (PHEV), and hybrid EV (HEV), also posted a 16% month-on-month increase from the 6,032 units sold in May.

In the January-to-June period, xEV sales surged by 132.7% to 31,381 units from 13,488 units sold in the year-ago period.

In June alone, BEVs accounted for nearly half of sales with 3,193 units, up 383.8% year on year. This brought six-month sales to 8,702 units, surging by 256.8% year on year.

PHEV sales skyrocketed by 3,902.4% to 1,681 units in June, bringing the six-month tally up by 3,356.9% to 5,531.

On the other hand, HEV sales fell by 9.9% to 2,121 units in June, but sales for the six-month period jumped by 57.5% to 17,148 units.

Toyota Motor Philippines Corp. remained the market leader as of end-June even as sales declined by 9.3% to 100,909 units.

This was followed by Mitsubishi Motors Philippines Corp., which saw a 17.5% drop in sales to 36,321 units in the six-month period.

Suzuki Phils., Inc. came in third despite a 13.7% decline in sales to 9,262 units as of end June.

Ford Motor Company Phils. Inc. placed fourth even as sales slipped by 32.1% to 7,435 units. Nissan Philippines, Inc. ranked fifth despite a 41.6% drop in sales to 6,921 units.