New vehicle sales in the Philippines rose by 2% to 42,870 units in December 2025 from 42,044 units a year earlier, 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 begun to slow in recent months, after three years of strong growth from the 2021 pandemic lows.
Economic growth in the country is expected to have stabilised in the fourth quarter of 2025, after growth slowed to 4.4% year-on-year in the third quarter, helped by increased government spending in response to widespread flooding following severe weather in the country. Over the full year, GDP growth is estimated to have slowed to 4.7%, down from 5.7 in 2024, reflecting weak consumer and investor sentiment, despite the central bank cutting its benchmark interest rate by 200 basis points to 4.50% in the last eighteen months.
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In the whole of 2025, the vehicle market fell slightly to 463,646 units, compared with 467,252 units in the previous year, underpinned by a 7% rise in commercial vehicle sales to 370,722 units, while sales of passenger cars fell by 23% to 92,924 units. Including non-CAMPI/TMA members, the Philippine vehicle market expanded by 3.7% to 491,395 units last year from 473,842 units in 2024.
Toyota dominated the market with sales rising by 5% to 229,447 units last year, with the company enjoying strong demand for its Hilux and Avanza/Veloz ranges; followed by Mitsubishi Motors with 86,808 units (-3%); Suzuki 21,984 units (+8%); Ford 21,784 units (-22%); and Nissan 20,571 units (-23%).
Sales of electrified vehicles, including those by non-member companies such as BYD, surged by 142% to 58,903 units in 2025, with hybrid vehicles accounting for around 90% of the total. In 2024, the government expanded its EO12 zero-tariff incentive programme, which runs until 2028, from just zero-emission vehicles to also include hybrid vehicles.
GlobalData expects the light vehicle market to continue to grow in 20026, by 4% to 493,000 units from 474,000 in 2025, with sales forecast to grow by 5% to 517,000 units in 2027, as consumers respond to reduced interest rates.
