New vehicle sales in the Philippines declined by over 8% to 35,842 units in February 2026 from 39,164 units in the same month last year, according to members’ wholesale data released jointly by the Chamber of Automotive Manufacturers of the Philippines Inc (CAMPI) and the Truck Manufacturers Association (TMA). The market has slowed in recent months, following three years of strong growth.
Last month’s fall came after a 10% year-on-year decline in January, in the wake of a sharp slowdown in economic growth in the country. GDP growth slowed to 3.0% year-on-year in the fourth quarter of 2025, from 3.9% growth in the third quarter, the slowest rate of growth since 2021 – at the height of the Covid-19 pandemic. Consumer spending growth moderated to 3.8% from 4.1%, while government spending growth slowed to 3.7% from 5.8%, and fixed investment shrank by 7.2% following growth of just 0.5%. The central bank has cut its benchmark interest rate to 4.25% in the last two years, from a peak of 6.5% in mid-2024, to support domestic consumption growth.
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In the first two months of 2026, the Philippine vehicle market was down by over 9% to 69,538 units from 76,768 units in the same period last year, with sales of passenger cars falling by 17% to 13,225 units, while commercial vehicle sales declined by over 7% to 56,313 units.
The associations’ data show sales of electrified vehicles surged by 67% to 5,701 units year-to-date, including a 50% rise in hybrid-electric vehicle (HEV) sales to 4,551 units, while sales of plug-in hybrids surged tenfold to 556 units, and sales of battery electric vehicles (BEVs) increased by 77% to 594 units.
Market leader Toyota reported a 6% sales decline to 34,300 units year-to-date, followed by Mitsubishi with 14,361 units (-8%); Suzuki 3,256 units (-8%); Nissan 3,143 units (-29%); and Ford 2,607 units (-22%).
GlobalData expects the Philippine light vehicle market to increase by less than 2% to 496,000 units in 2026, after growing by almost 4% to 489,000 units in 2025, with sales forecast to increase by a further 4% to 521,000 units in 2027, as consumers continue to respond to the reduced interest rates.
