New vehicle sales in the Philippines declined by a further 8% to 37,231 units in June 2026, down from 40,483 units in the same month last year, according to member wholesale data released jointly by the Chamber of Automotive Manufacturers of the Philippines Inc (CAMPI) and the Truck Manufacturers Association (TMA).

This was the sixth consecutive month of decline for the market, as economic growth in the country continued to slow. The latest government 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. Higher 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.

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 six months of 2026, the Philippine vehicle market was down by over 11% to 204,557 units, from 230,912 units in the same period last year, with sales of passenger cars and commercial vehicles both falling by over 11% to 40,503 units and 164,054 units, respectively. Sales of electrified vehicles, including battery electric vehicles (BEVs) and hybrids, surged by 132% to 31,351 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 100,909 units year-to-date, followed by Mitsubishi with 36,321 units (-17%); Suzuki 9,262 units (-14%); Ford 7,435 units (-32%); and Nissan 6,921 units (-42%).

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.