The Philippine auto industry is entering 2026 with guarded expectations as lingering aftershocks from a turbulent second half of 2025 weigh on recovery prospects.
Toyota Motor Philippines Corp. Chairman Alfred Ty said manufacturers are preparing for flat growth, describing stability as a reasonable outcome after last year’s volatility.
“For the entire industry, we’re expecting flat growth. Maganda na yung flat,” Ty said, citing the sharp fourth quarter slowdown that disrupted momentum across vehicle segments. He added that companies remain ready to adjust if conditions improve, but the late 2025 shock continues to shape forecasts.
Industry data reflect the cautious stance. Combined sales of members of the Chamber of Automotive Manufacturers of the Philippines, Inc. and the Truck Manufacturers Association slipped 0.8 percent in 2025 to 463,646 units from 467,252 in 2024, missing the 500,000 unit target.
Passenger car sales weakened while commercial vehicles provided relative stability, highlighting uneven demand across segments.
Against this backdrop, Toyota is recalibrating its approach to protect market leadership. Ty said the company will intensify its focus on after sales services, strengthen brand presence, and expand its dealer network, particularly in underserved regions with untapped demand.
The strategy reflects a broader industry pivot toward customer retention and service driven revenue as new vehicle sales plateau.
By reinforcing its nationwide footprint and improving service accessibility, Toyota aims to cushion cyclical swings while positioning itself for growth once consumer confidence and economic conditions regain momentum.
For now, steady performance is the goal as the sector navigates an uncertain road ahead.
