Auto sales inch up despite drop in demand for cars

New vehicle sales inched up by an annual 3.6% in June as a double-digit surge in commercial vehicle sales helped offset a 35% decline in sales of passenger cars, an industry report showed.

A joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) showed new vehicle sales increased to 40,483 units in June from 39,088 units in the same month a year ago.

Month on month, car sales went up by 1.8% from 39,775 units sold in May.

In June, passenger car sales slumped by 34.9% to 6,922 from 10,628 units sold in the same month in 2024. Month on month, sales went down by 12.32% from 7,895 units sold in May.

“While passenger car sales reached 6,922 units, ongoing market shifts and evolving buyer preferences present opportunities for innovation and recovery in this segment,” said CAMPI President Rommel R. Gutierrez in a statement on Monday.

Meanwhile, sales of commercial vehicles, which accounted for 82.9% of June sales, jumped by 17.9% to 33,561 from 28,460 units a year ago. Month on month, sales increased by 5.3% from 31,880 units in May.

Broken down, light commercial vehicle sales increased by 25.3% year on year to 25,501 units in June, while sales of Asian utility vehicles inched up by 0.3% to 7,199.

Sales of light-duty trucks and buses went up by an annual 6.4% to 532 units, while sales of large trucks surged by 41.5% to 58. Medium truck sales dropped by 30% to 271 units in June.   

For the January-to-June period, new vehicle sales increased by 2% to 230,912 units from 226,279 units a year ago.

Passenger car sales declined by 23.8% to 45,647 in the first six months from 59,875 in the same period last year.

Commercial vehicle sales grew by 11.3% to 185,265 units in the first half from 166,404 a year ago.

“As the industry heads into the second half of the year, manufacturers and dealers remain focused on enhancing customer experience, introducing updated vehicle lineups, and supporting market recovery across all segments — including passenger cars,” Mr. Gutierrez said.

Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said that the decline in passenger sales reflects consumers’ concern over elevated interest rates, high pump prices and overall economic uncertainty.

“High interest rates, elevated fuel and maintenance costs, and economic uncertainty are likely dampening demand for big-ticket purchases like cars,” he said in a Viber message.

“At the same time, we may be seeing a structural shift in mobility preferences as more Filipinos are relying on shared, digital, or more affordable transport options instead of buying new vehicles,” he added.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that there could be some demand shift from passenger cars to motorcycles amid global economic uncertainties due to Mr. Trump’s tariffs.

“(Motorcycles) are more affordable to acquire and maintain with much lower costs, can better navigate through heavy traffic, and require less space in parking areas at residences as well as in commercial areas,” he said in a Viber message.

“[There is] also increased demand for motorcycle taxis and delivery services as an alternative to passenger cars and commercial vehicles,” he added.

Meanwhile, Mr. Ricafort said that electrified vehicles (EVs), including hybrids, are new sources of demand for the industry.

More EV players coming into the country means consumers have more choices in terms of price, technology and quality, he added.

“It becomes more responsive to customers ever-changing requirements… with better terms and prices,” he added.

In June, the industry booked 3,057 EV sales, down by 15.4% from the 3,613 units sold in May, as sales of battery EVs fell by 17.5% to 660 and hybrid EVs dropped by 15.7% to 2,355 units. Plug-in hybrid EVs posted a 110% increase month on month to 42 units in June.

For the first six months, EV sales stood at 13,490 units, accounting for a 5.84% market share.

Toyota Motor Philippines Corp. remained the market leader, with sales of 111,276 units in the January-to-June period, up 6.6% from 104,350 units a year ago. It accounted for a 48.19% share of the market.

Mitsubishi Motors Philippines Corp. ranked second with a market share of 19.06% after posting a 3.3% annual increase in sales to 44,021 units in the first six months.

In third spot was Nissan Philippines, Inc., whose sales dropped 14.9% to 11,859. It had a market share of 5.14%.

Rounding out the top five were Ford Motor Co. Phils., Inc., which saw a 24.3% drop in sales to 10,953, and Suzuki Phils., Inc., which saw an 11.2% increase in sales to 10,732 units.

For this year, CAMPI has set a sales target of 500,000 units. Last year, the industry sold 467,252 units. — Justine Irish D. Tabile, Reporter