New vehicle sales in the Philippines declined by a further 16% to 33,532 units in May 2026 from 39,775 units in the same month last year, according to wholesale data released jointly by the Chamber of Automotive Manufacturers of the Philippines Inc (CAMPI) and the Truck Manufacturers Association (TMA).
This was the fifth consecutive month of decline for the market, as economic growth in the country continued to slow. The latest economic data show that GDP growth slowed to 2.8% year-on-year in the first quarter of 2026, down from 3.7% in the second half of 2025 and 4.4% for the whole of last year. Rising fuel prices resulting from the conflict in the Middle East have added to existing economic pressures, including the fallout from last year’s infrastructure corruption scandal.
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Despite a sharp drop in household consumption in the first quarter, the central bank has raised its benchmark interest rate by 50 basis points to 4.75% since April, reversing a two-year easing cycle from a peak of 6.5% in mid-2024, to help rein in surging inflation resulting from the recent fuel price hikes.
In the first five months of 2026, the Philippine vehicle market was down by over 12% to 167,324 units from 190,429 units in the same period last year, with sales of passenger cars falling by 14% to 33,363 units, while commercial vehicle sales declined by 12% to 133,961 units. Sales of electrified vehicles, including battery electric vehicles (BEVs) and hybrids, surged by 133% to 24,356 units in this period, however, as consumers prioritized fuel-efficient vehicles amid rising fuel prices.
The overall market leader, Toyota, reported a 9% sales decline to 83,282 units year-to-date, followed by Mitsubishi with 29,786 units (-19%); Suzuki 7,730 units (-13%); Ford 6,137 units (-28%); and Nissan 6,036 units (-39%).
GlobalData expects the Philippine light vehicle market to fall by over 3% to 473,000 units in 2026, after growing by almost 4% to 489,000 units in 2025, followed by a 9% rebound to 515,000 units in 2027.
