Philippine vehicle sales fall 1% in May

Yahoo

4 hours ago

New vehicle sales in the Philippines declined by just over 1% to 39,775 units in May 2025 from 40,271 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).
This was the second year-on-year decline so far this year, following the market's strong three-year rebound from the pandemic lows. The Philippine economy expanded by 5.4% year-on-year in the first quarter of 2025, slightly better than the revised 5.3% growth in the fourth quarter of 2024, underpinned by stronger domestic consumption, export growth and lower interest rates. The central bank cut its benchmark interest rate by a further 25 basis points in its June meeting to 5.25%, down from a peak of 6.5% last year, to support domestic growth.
Rizal Commercial Banking Corporation's chief economist, Michael Ricafort, said in a statement: 'Vehicle sales have been weighed down recently by reduced consumer and business sentiment as the trade war is expected to reduce global trade, investments, employment, and the world economy.'
In the first five months of 2025, the vehicle market was still up by almost 2% to 190,429 units compared with 187,191 units in the same period last year, driven by a 10% rise in commercial vehicle sales to 151,704 units, while sales of passenger cars fell by over 21% to 38,725 units.
Separate industry data showed that sales of electrified vehicles amounted to 10,433 units year-to-date, including 8,536 hybrid electric vehicles (HEVs), 1,779 battery electric vehicles (BEVs) and 118 plug-in hybrids. Not all brands are covered in this data, however, including some key Chinese brands. 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.
Toyota reported a 6% sales increase to 91,652 units in the five-month period, helped by the recent launch of the new entry-level Hilux Tamaraw; followed by Mitsubishi Motors with 36,613 units (+4%); Nissan 9,879 units (-14%); Suzuki 8,913 units (+12%); and Ford 8,559 units (-30%).
CAMPI remains optimistic that the vehicle market will continue to expand this year, to 500,000 units from 467,252 units in 2024. The association's president, Rommel Gutierrez, told reporters: 'We are encouraged by the industry's sustained growth, especially commercial vehicles. With strong momentum heading into the second half of the year, CAMPI remains confident in the automotive industry's positive performance.'
"Philippine vehicle sales fall 1% in May" was originally created and published by Just Auto, a GlobalData owned brand.
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