New vehicle sales in the Philippines declined by a further 3% to 37,319 units in July 2026, down from 38,295 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 seventh 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 2.3% year-on-year in the second quarter, from 2.8% in the first quarter and 4.4% in the whole of last year. Rising fuel prices resulting from the conflict in the Middle East compounded existing economic pressures, including the fallout from last year’s major infrastructure corruption scandal.
Despite a sharp drop in household consumption, the central bank raised its benchmark interest rate by 50 basis points to 4.75% in the second quarter, 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 increases.
In the first seven months of 2026, the Philippine vehicle market was down by over 10% to 241,725 units, from 269,207 units in the same period last year, with sales of passenger cars falling by 11% to 47,856 units, while commercial vehicle sales were down by 10% to 193,869 units.
Sales of electrified vehicles surged by 136% to 38,286 units in this period, as consumers prioritised fuel-efficient vehicles amid rising fuel prices. This includes a 56% rise in hybrid-electric vehicle (HEV) sales to 20,716 units, and a 300% surge in battery electric vehicle (BEV) sales to 10,476 units, while plug-in hybrid electric vehicle sales jumped 25-fold to 7,094 units.
The overall market leader, Toyota, reported an 8% sales decline to 118,705 units year-to-date, followed by Mitsubishi with 42,590 units (-17%); Suzuki 10,950 units (-13%); Ford 8,590 units (-36%); and Nissan 7,899 units (-42%).
GlobalData expects the Philippine light vehicle market to fall by over 2% to 478,000 units in 2026, after growing by almost 4% to 489,000 units in 2025, followed by an 8% rebound to 515,000 units in 2027.
