New vehicle sales in the Philippines increased by almost 8% to 40,306 units in March 2025 from 37,474 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 vehicle market has continued to grow so far this year, after rebounding strongly in the previous three years from the pandemic lows – supported by strong domestic economic growth. GDP expanded by 5.6% last year, driven by strong domestic consumption and exports. The central bank has cut its benchmark interest rate by 25 basis points on four occasions since last August, to 5.50%, to help support domestic consumption.
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In the first quarter of 2025 vehicle sales increased by almost 7% to 117,074 units from 109,606 units in the same period last year, driven by a 14% rise in commercial vehicle sales – including SUVs – to 92,742 units while sales of passenger cars fell by 14% to 24,332 units.
Michael Ricafort, chief economist at Rizal Commercial Banking Corporation, pointed out that the decline in passenger cars reflected a “greater preference for SUVs, pickup trucks and other vehicles with a higher road clearance after the numerous typhoons and widespread floods that hit in the country in the latter part of 2024.”
The associations’ data show that a total of 5,311 electrified vehicles were sold year-to-date, including 4,544 hybrid electric vehicles (HEVs), 692 battery electric vehicles (BEVs) and 75 plug-in hybrids. Last year the government added hybrid electric vehicles (HEVs) to its EO12 zero-tariff incentive programme, which expires in 2028, having previously applied only for zero-emission vehicles such as battery electric vehicles (BEVs).
Toyota reported an 12% increase in first-quarter sales to 55,510 units, helped by the recent launch of the new entry-level Hilux Tamaraw; followed by Mitsubishi Motors with 23,380 units (+12%); Nissan 6,720 units (-15%); Suzuki 5,440 units (+24%); and Ford 5,220 units (-31%).
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By GlobalDataEarlier this year CAMPI said it expected total vehicle sales in the country to exceed 500,000 units this year, up from 467,252 units in 2024, driven by “newly rolled out models and the anticipated introduction of new models”, while Toyota is forecasting total industry volumes of 512,000 units.
The Philippine government plans to introduce new incentives this year to encourage more local vehicle manufacturing in the country, under its “Revitalizing the Automotive Industry for Competitiveness Enhancement” (RACE) programme. RACE will look to channel market incentives mainly to local producers to encourage investment.
