New vehicle sales in the Philippines continued to decline in April 2026, by 19% to 27,225 units from 33,580 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).
This was the fourth consecutive monthly decline for the market, with the rate of decline accelerating as economic growth in the country continued to weaken. 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% in 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 of last year’s infrastructure corruption scandal.
Despite a sharp drop in household consumption in the first quarter, the central bank raised its benchmark interest rate by 25 basis points to 4.5% in 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 four months of 2026, the Philippine vehicle market was down by almost 12% to 132,867 units from 150,654 units in the same period last year, with sales of passenger cars falling by over 16% to 25,746 units, while commercial vehicle sales declined by 11% to 107,121 units.
The overall market leader, Toyota, reported an 8% sales decline to 66,206 units year-to-date, followed by Mitsubishi with 24,371 units (-18%); Suzuki 6,289 units (-10%); Nissan 5,323 units (-35%); and Honda 4,440 units (-46%).
The associations’ data show that sales of electrified vehicles increased by 159% to 17,655 units in the first four months of the year, as consumers prioritized fuel-efficient vehicles as fuel prices surged. This includes a 115% rise in hybrid-electric vehicle (HEV) sales to 12,368 units, while sales of plug-in hybrids surged to 2,579 units, and sales of battery electric vehicles (BEVs) amounted to 2,708 units. The Philippine government is expected to roll out a new EV incentive programme in July, with the aim of attracting new investment into the sector.
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, with sales forecast to rebound by 9% to 515,000 units in 2027.
