After a largely flat 2025, the Philippine automotive industry is gearing up for a long-awaited breakthrough, with vehicle sales projected to finally surpass the 500,000-unit mark this year, according to the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI).
CAMPI President Jose Maria Atienza said industry sales could reach around 503,000 units in 2026, translating to modest growth of about 2–3 percent.
“We’re looking at a trend where the market has a strong chance of reaching 500,000 units this year,” he said, framing the outlook as a continuation of the sector’s gradual recovery.
The industry’s performance last year was largely a story of two halves. Sales expanded by an estimated 5–7 percent in the first six months, but momentum weakened in the second half as weather disturbances, natural calamities, and softer pickup truck demand took a toll.
Changes in the excise tax structure, which affected pickup truck pricing, also weighed on sentiment. A strong December, however, helped offset earlier losses.
Data from the Truck Manufacturers Association showed total vehicle sales slipped 0.8 percent year-on-year in 2025 to 463,646 units, down from 467,252 in 2024. “Essentially, the market was flat,” Atienza said.
Despite this, he stressed that fundamentals remain intact, citing improving consumer confidence and a shift in buyer preferences toward MPVs, SUVs, and other utility vehicles. “The mix is changing,” he noted, as customers prioritize space and versatility for family and business use.
Electrified vehicles are also gaining traction, accounting for about 12 percent of total sales last year, with further growth expected as more models enter the market.
Pickup trucks may continue to lag in the near term, but Atienza remains cautiously optimistic. “We believe we’ve bottomed out,” he said. “The 500,000-unit level is within reach — it’s just a matter of timing.”
