Philippines New Car Sales Decline by 1.2% in May 2025

Recent wholesale data released by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) shows that new car sales in the Philippines fell by 1.2% year-on-year in May 2025, from 40,271 units in the same month last year to 39,775 units. This marks the second year-on-year decline in car sales in the Philippines this year, following a strong rebound over the past three years from the pandemic lows. In terms of the overall macroeconomic environment, the Philippine economy grew by 5.4% year-on-year in the first quarter of 2025, slightly above the revised 5.3% in the fourth quarter of 2024, driven by robust domestic consumption, export growth, and declining interest rates. The Bangko Sentral ng Pilipinas (BSP) lowered its benchmark interest rate by another 25 basis points to 5.25% in June, down significantly from last year's peak of 6.5%, in support of domestic economic growth. Michael Ricafort, chief economist at Rizal Commercial Banking Corporation, noted in a statement: "Recent declines in Philippine car sales are affected by weakened domestic consumption and business confidence, as the trade war is expected to impact global trade, investment, employment, and the world economy." In the first five months of 2025, cumulative car sales in the Philippines showed a slight increase of 1.7% year-on-year, totaling 190,429 units (compared to 187,191 units last year), with commercial vehicle sales increasing by 10% to 151,704 units, while passenger vehicle sales declined by 21.3% to 38,725 units. Another set of industry data indicates that electric vehicle sales in the Philippines reached 10,433 units this year, including 8,536 hybrid electric vehicles (HEVs), 1,779 battery electric vehicles (BEVs), and 118 plug-in hybrid vehicles. However, this data does not cover all brands, including some major Chinese automakers. Last year, the Philippine government extended the EO12 zero-tariff incentive program to 2028, expanding its scope from purely zero-emissions electric vehicles to include hybrid vehicles. In terms of brand performance, Japanese brands dominate the Philippine market. Toyota's sales in the Philippines increased by 6% to 91,652 units in the first five months, aided by the launch of the new entry-level Hilux Tamaraw model. Mitsubishi ranked second with 36,613 units sold (up 4% year-on-year), followed by Nissan with 9,879 units (down 14%), Suzuki with 8,913 units (up 12%), and Ford with 8,559 units (down 30%). The Chamber of Automotive Manufacturers of the Philippines remains optimistic about the market outlook, projecting that car sales in the country will increase from 467,252 units in 2024 to 500,000 units in 2025. Association President Rommel Gutierrez stated: "The continued growth of the industry is encouraging, especially in the commercial vehicle sector. With momentum strengthening in the second half of the year, the association is confident in the positive performance of the automotive industry."