Philippine auto sales slip in July, but EV sales surge

By Beatriz Marie D. Cruz, Senior Reporter

VEHICLE SALES in the Philippines fell by 2.5% year on year in July, as weak consumer sentiment continued to dampen demand for big-ticket purchases, industry data showed.

In a joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association, total vehicle sales dropped by 2.5% to 37,319 units in July from the 38,295 units sold in the same month last year.

July saw the highest monthly vehicle sales since the 42,870 recorded in December 2025.

Month on month, auto sales inched up by 0.6% from the 37,079 units sold in June.

Including other industry data, CAMPI said total vehicle sales reached 42,880 units in July.

Passenger car sales, which accounted for 20.36% of total sales, fell by 6.4% to 7,600 units in July from the 8,120 units sold in the same month last year. It likewise slipped by 2.7% from 7,814 units sold in June.

Commercial vehicle sales, which made up 79.64% of industry sales, dipped by 1.5% to 29,719 units in July from 30,175 units sold in the same month last year. On a monthly basis, sales rose by 1.6% from 29,265 units sold in June.

In July, sales of light commercial vehicles went up by 1% to 22,744 units, but sales of Asian utility vehicle sales fell by 6.5% to 6,231 units.

Sales of light- and medium-duty trucks in July declined by 25.5% and 19.5% to 452 units and 243 units, respectively. Heavy-duty trucks sales also slumped by 38% to 49 units in July.

In the first seven months of the year, total vehicle sales fell by 10.2% to 241,725 units from 269,207 units a year ago.

As of end-July, passenger car sales dropped by 11% to 47,856 units, while commercial vehicle sales slid by 10% to 193,869 units.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said vehicle demand remains soft as households face high living costs.

“Vehicle demand remains relatively cautious as households continue to contend with elevated borrowing costs, high living expenses, and uncertainty around big-ticket purchases. This can temper demand for conventional vehicles even as overall mobility needs remain strong,” he said in a Viber message.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber chat that the continued year-on-year drop in vehicle sales could mainly be due to higher pump prices caused by the Middle East war.

EV SALES
CAMPI President Jose Maria M. Atienza said demand for electrified vehicles, including hybrid vehicles, continued to grow in July.

“The shift to electrification continues to accelerate, with xEVs (electric vehicles) accounting for 29.5% of the market last July. This is up 18 points from the same month last year,” Mr. Atienza said in a statement.

The xEV segment includes battery EV (BEV), plug-in hybrid EV (PHEV), and hybrid EV (HEV).

In July, xEV sales more than doubled by 161.8% to 7,086 units from the 2,707 units sold last year. Month on month, xEV sales rose by 3.6% from the 6,843 units sold in June.

For the seven-month period, xEV sales surged by 136.4% to 38,286 units from 16,195 units last year.

HEVs, which accounted for 41.83% of sales in July, jumped by 23.4% to 2,964 units, bringing year-to-date sales 55.9% higher to 20,716 units.

BEV sales skyrocketed by 1,315.7% to 2,520 units in July, while PHEV sales surged by 1,151.6% to 1,602 units.

In the seven-month period, BEV sales quadrupled to 10,476 units, while PHEV sales soared by 2,363.2% to 7,094 units.

Mr. Rivera said the surge in sales of electrified vehicles reflects the improved availability in EV models and stronger consumer awareness.

“The market is clearly diversifying even if total vehicle sales remain soft,” he noted.

In the coming months, xEV sales are expected to remain the fastest-growing segment, while sales of gas-powered vehicles may slowly recover if external conditions improve, Mr. Rivera said.

“Car sales may remain broadly stable with modest upside if financing conditions improve, and inflation continues to ease,” he added.

Toyota Motor Philippines Corp. remained the top-selling brand as of end-July despite an 8.2% decline in sales to 118,706 units.

This was followed by Mitsubishi Motors Philippines Corp. which saw sales drop by 16.8% to 42,592 units.

Suzuki Phils., Inc. came in third despite a 13.2% drop in sales to 10,951 units.

Rounding out the top five are Ford Motor Company Phils., Inc. which saw sales fall by 35.5% to 8,587 units, and Nissan Philippines, Inc. which posted a 42% decline in sales to 7,899 units.