New vehicle sales in the Philippines declined by 2.6% to 38,295 units in July 2025 from 39,331 units a year earlier, according to member wholesale data released jointly by the Chamber of Automotive Manufacturers of the Philippines Inc (CAMPI) and the Truck Manufacturers Association (TMA).

The Philippine vehicle market has held up reasonably well this year, after rebounding strongly in the last three years from the pandemic lows, but is struggling to move significantly above current levels. The country’s economy expanded by 5.5% year-on-year in the second quarter, up from 5.4% growth in the first quarter, supported by slightly higher household spending growth. The central bank has cut its benchmark interest rate by 25 basis points five times in the last year, to 5.25% from a peak of 6.5%, to support domestic growth.

In the first seven months of 2025, the vehicle market expanded by just over 1% to 269,207 units, from 265,610 units in the same period last year, driven by an 11% rise in commercial vehicle sales to 215,440 units, while sales of passenger cars fell by 24% to 53,767 units.

Toyota reported a 5% sales increase to 129,334 units in the seven-month period, helped by last year’s launch of the new entry-level Hilux Tamaraw; followed by Mitsubishi Motors with 51,167 units (+1%); Nissan 13,629 units (-14%); Ford 13,323 units (-21%); and Suzuki 12,622 units (+10%).

Sales of electrified vehicles amounted to 16,195 units year-to-date, including 13,290 hybrid electric vehicle (HEVs), 2,617 battery electric vehicles (BEVs), and 288 plug-in hybrids (PHEVs). Not all brands are covered, however, including China’s BYD, which is the key player in this segment. Last year, the government expanded its EO12 zero-tariff incentive programme, which runs until 2028, from just zero emission vehicles to also include hybrid vehicles.

CAMPI remains optimistic that the vehicle market will continue to expand in the second half of the year, forecasting full-year sales to reach 500,000 units - up from 467,252 units in 2024.