Philippine vehicle sales slump in January

By Beatriz Marie D. Cruz, Reporter

PHILIPPINE CAR SALES slumped in January amid a weaker demand for both passenger and commercial vehicles, according to an industry report.

In a joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA), vehicle sales declined by 10.4% to 33,696 units in January from 37,604 units sold in the same month in 2025.

January saw the biggest annual decline in four years or since the 11.2% drop in January 2022.

Month on month, vehicle sales plunged by 21.4% from 42,870 units sold in December 2025, when demand is typically higher.

Despite this, vehicle sales are still expected to exceed 500,000 units this year, as demand is likely to pick up in the latter part of the year, CAMPI President Jose Maria M. Atienza said in a statement.

“When market seasonality adjustment is factored in, the January sales level aligns with the steady pace observed during the second half of last year,” CAMPI said.

Passenger car sales, which accounted for 18.33% of total industry sales, dropped by 20.1% to 6,178 units in January from 7,729 units sold in the same month last year. Month on month, sales of passenger cars fell by 22.86% from 8,009 in December.

In January, commercial vehicle sales slipped by 7.9% to 27,518 units from 29,875 a year ago. This accounted for 81.67% of the industry’s total sales for the month.

Month on month, sales of commercial vehicles dropped by 21.1% from 34,861 units sold in December last year.

Broken down, light commercial vehicle sales fell by 8.8% to 20,392 units, while sales of Asian utility vehicles (AUV) declined by 6.6% to 6,253.

Sales of light commercial vehicles and AUVs both declined month on month by 17.3% and 32.5%, respectively.

The only segment that saw annual growth was light truck sales, which jumped by 21.7% to 605 units in January from 497 units a year ago. On a monthly basis, sales also increased by 15% from 526 in December.

Medium truck sales slipped by 13.4% year on year in January to 226 units, and also plunged by 40.4% month on month.

Sales of heavy trucks slumped 39.1% to 42 units year on year but doubled from 21 in December.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the drop in vehicle sales to the weak consumer sentiment that has persisted amid the corruption scandal.

“[Investors are on a] wait-and-see mode if catch-up government spending premised on priority anti-corruption measures/reforms are taken seriously, which could help uplift investor confidence, including spending on big-ticket items like vehicles,” he said in a Viber message.

BRIGHT SPOT
Meanwhile, CAMPI said it is betting on the growing demand for electric vehicles (EV) in the country to drive industry sales this year.

“Despite the decline in both the passenger and commercial vehicle main categories, CAMPI sees a bright spot in the continuous growth in the electrified segment,” it said.

Data from CAMPI and TMA showed that electric vehicle sales surged by an annual 63.1% to 2,610 units in January from 1,600 a year ago.

The segment, which includes battery EV (BEV), plug-in hybrid EV (PHEV), and hybrid EV (HEV), accounted for a 7.75% share of the market.

Month on month, EV sales declined by 40.1% from 4,358 units sold in December 2025.

Sales of BEVs jumped by 78.8% year on year to 261 units in January, while sales of PHEVs surged by 2,977.8% to 277 units.

On a monthly basis, BEV and PHEV sales dropped by 25.2% and 5.1%, respectively.

Sales of hybrid EVs jumped by 43.4% year on year in January to 2,072 units but declined by 44.3% from December.

Mr. Ricafort expects higher EV sales this year, as the entry of new players reduced prices and gave consumers more options.

He also noted that more taxis and utility vehicles are expected to shift to EVs this year, adding that more consumers have shown an increased preference for low-carbon cars.

In January, Toyota Motor Philippines Corp. remained the leader with a 48.51% market share, despite a 9.6% decline in year-on-year sales to 16,346 units.

This was followed by Mitsubishi Motors Philippines Corp., whose sales fell by an annual 5% to 7,003 units in January.

Suzuki Phils., Inc. came in third even as sales declined by 7.6% to 1,646 units.

Also included in the top five were Nissan Philippines, Inc., whose sales dropped by 32.8% to 1,589 units; and Ford Motor Company Phils., Inc., whose sales declined by 19.3% to 1,272 units.