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Vehicle sales in the Philippines slipped for a third straight month in September, dragged by a double-digit decline in passenger car demand amid tighter credit and shifting consumer spending priorities.

Data from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association released on Thursday showed total sales fell 3.8% year on year to 38,029 units from 39,542 a year earlier. Month on month, sales improved slightly from August’s 7.6% drop, suggesting modest recovery momentum.

Passenger car sales plunged 23.9% to 7,948 units, accounting for just over a fifth of total industry volume. That segment, however, rebounded 4.7% from August’s 7,591 units. Commercial vehicle sales — which make up almost four-fifths of the market — rose 3.4% year on year to 30,081 units and were up 5.2% month on month.

Within the commercial segment, light commercial vehicle sales inched up 0.7% to 21,109 units, while Asian utility vehicles (AUV) rose 11.5% to 7,943. On a monthly basis, light commercial vehicle sales climbed 1.2% and AUVs rose 16.1%.

Light-duty truck and bus sales grew 8.3% to 589 from a year earlier, while medium- and heavy-duty categories fell 7.5% and 4.2%, respectively, to 371 and 69 units. Compared with July, all truck categories posted increases.

The annual decline reflected “base effects from high sales last year,” alongside weather disruptions and recent earthquakes that reduced operating days for dealers and consumers alike, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

He added that improved weather conditions toward yearend could help spur demand.

The automotive industry is targeting sales of 500,000 units this year, up from 467,252 units in 2024.

Consumers hold back

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said the drop reflected “a mix of rising borrowing costs, slower wage growth and shifting consumer priorities.”

“Many households appear to be postponing big-ticket purchases amid economic uncertainty and constrained purchasing power,” he said in a Viber message.

“If key headwinds such as liquidity and credit tightening, weaker consumer confidence and tariff issues persist, we may see the decline continue through yearend unless targeted incentives or stronger consumer sentiment emerges,” he added.

From January to September, total vehicle sales edged down 0.3% to 343,410 units from a year earlier. Passenger car sales plunged 23.6% to 69,306 units, offsetting an 8.2% rise in commercial vehicle sales to 274,104.

Toyota Motor Philippines Corp. remained dominant with 164,797 units sold in the first nine months, a 3.6% increase that gave it a commanding 48% market share. Mitsubishi Motors Philippines Corp. followed with 65,421 units, down 0.9% year on year, representing 19% of the market.

Ford Motor Co. Philippines, Inc. placed third with 16,688 units, down 22%, while Nissan Philippines, Inc. and Suzuki Philippines, Inc. sold 16,621 and 16,390 units, respectively. Suzuki’s 9.3% rise was among the strongest in the top five, reflecting continued strength in smaller, fuel-efficient vehicles.

CAMPI President Rommel R. Gutierrez said the latest figures underscored the industry’s resilience.

“The September results reflect the sector’s adaptability and commitment to innovation,” he said in a statement. “As we continue to embrace electrification and expand commercial mobility solutions, we remain optimistic about closing the year on a high note.”

EVs gain ground

Electrified vehicle (EV) sales reached 20,662 units in the first nine months, representing 6% of total sales.

Meanwhile, the Electric Vehicle Association of the Philippines (EVAP) and the Department of Energy (DoE) expect EV registrations to reach 35,000 by yearend, up from 29,715 as of July.

Patrick T. Aquino, director of the DoE’s Energy Utilization Management Bureau, said this year’s registrations could mark a “banner year” for EV adoption. “If we do reach 35,000, it will confirm a banner year in both sales and registrations,” he said at the 13^th Philippine Electric Vehicle Summit on Thursday.

EVAP President Edmund A. Araga said the milestone reinforces the sector’s goal of reaching 2.5 million EVs by 2040.

“Each year, we’re breaking our own records,” he said. “The bold target is to make EVs account for at least 50% of all vehicles on our roads by 2040.”

With incentives now rolling out, that goal looks achievable, he added.

Under the Electric Vehicle Industry Development Act, EV owners enjoy incentives such as exemption from coding schemes, registration discounts and priority parking. The government has also begun crafting an EV incentive strategy to further support adoption.

Mr. Aquino said most EV growth in the coming years would come from two- and three-wheelers, which dominate the local transport market and are cheaper to convert to electric power. “We are confident the upcoming EV incentive strategy will accelerate this shift,” he said. — Justine Irish D. Tabile, Reporter

Philippine stocks recovered on Thursday, with buyers stepping in late in the trading session to take advantage of lower share prices.

The benchmark Philippine Stock Exchange index (PSEi) rose by 0.38% or 23.09 points to close at 6,053.96, while the broader all-share index climbed 0.28% or 10.20 points to 3,637.58.

“The index closed in positive territory after bargain hunting kicked in when the market touched an intraday low of 6,006.60,” AP Securities, Inc. said in a market note.

The PSEi opened Thursday’s session at 6,024.51, slightly lower than Wednesday’s close of 6,030.87. It hit an intraday low of 6,006.60, but buying helped the index recoup its losses to close nearer to its best showing for the session, which was logged at 6,055.75.

“The Philippine market went up, driven by late bargain hunting toward the end of the trading day as investors sought opportunities after recent declines. However, overall sentiment remained cautious as the peso continued to weaken against the US dollar,” Luis A. Limlingan head of sales at Regina Capital Development Corp. said in a Viber message.

The peso plunged by 20 centavos to close at PHP 58.61 against the dollar on Thursday from Wednesday’s finish of PHP 58.41, Bankers Association of the Philippines data showed. This was a fresh near nine-month low for the local unit.

Sectoral indices closed mixed. Financials dropped by 0.56% or 11.26 points to 1,999.66; holding firms retreated by 0.12% or 6.30 points to 4,870.87; and property decreased by 0.09% or 2.21 points to 2,226.43.

Meanwhile, services jumped by 1.71% or 39.30 points to 2,330.54; mining and oil rose by 1.26% or 167.82 points to 13,446.31; and industrials climbed by 0.52% or 46.54 points to 8,925.86.

Decliners narrowly outnumbered advancers, 99 to 92, while 68 names closed unchanged.

Value turnover declined to PHP 4.80 billion with 1.42 billion shares traded on Thursday from Wednesday’s PHP10.81 billion with 12.06 billion shares changing hands.

Net foreign buying was PHP 5.43 million on Thursday versus the PHP 104.43 million in net selling recorded on Wednesday.

Meanwhile, Asian stocks fell for a second day on Thursday as lackluster earnings from tech megacaps deepened a selloff on Wall Street, while US sanctions against Russia and possible new export controls on China revived geopolitical worries, Reuters reported.

MSCI’s broadest index of Asia-Pacific shares outside Japan was last off 0.4%, while Japan’s Nikkei 225 sank 1.5%.

Chinese stocks fell as much as 1.1% after sources said the White House is considering a plan to curb an array of software-powered exports to China to retaliate against Beijing’s latest round of rare earth export restrictions.

Global markets are easing off record highs as corporate earnings season kicks off and investors take profits. While results or outlooks from megacaps have disappointed investors, most of the companies that have reported so far have beaten estimates. — Alexandria Grace C. Magno with Reuters

Share prices closed lower on Wednesday, weighed down by a weaker peso and falling gold prices, with investors grappling with the absence of fresh catalysts.

The benchmark Philippine Stock Exchange index (PSEi) fell 1.03% or 62.66 points to close at 6,030.87, while the broader all-share index dropped 0.83% or 30.47 points to 3,627.38.

AP Securities, Inc. said in a market note that the equities fell back after four consecutive days of unsuccessful attempts to breach the 6,100 level.

“The market struggled to find new catalysts (while) the peso weakened. Moreover, the dip in gold spot prices also contributed to the negative sentiment in the market,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said via Viber.

The peso closed at PHP 58.41 to the dollar on Wednesday, weakening from Tuesday’s finish of PHP 58.225, the Bankers Association of the Philippines reported.

US stocks were mixed in Tuesday trading, with the Dow higher as solid earnings drew investors to industrial and capital goods sectors, Reuters reported.

“The S&P 500 finished flat, showing little movement by the close, while declines in growth and semiconductor stocks pulled the Nasdaq slightly lower,” Mr. Limlingan said.

Most sectoral indices closed lower Wednesday. Mining and oil were down 5.91% or 834.12 points at 13,278.49; financials dropped 1.62% or 33.2 points to 2,010.92; services fell 1.42% or 33.05 points to 2,291.24; property was down 1.14% or 25.68 points at 2,228.64; and industrials fell 0.95% or 85.22 points to 8,879.32.

Meanwhile, holding firms rose 0.06% or 3.16 points to 4,877.17.

Decliners outnumbered advancers, 150 to 57, while 48 issues were unchanged.

The value of trade was PHP 10.81 billion on Wednesday on a volume of 12.06 billion shares. Tuesday’s value and volume had been PHP 5.24 billion and 1.31 billion shares.

Net foreign selling was PHP 104.43 million, reversing the PHP 231.58 million in net buying Tuesday. — Alexandria Grace C. Magno

Maynilad Water Services, Inc. has set the final offer price for its initial public offering (IPO) at PHP 15 per share, matching the upper end of its revised price range, according to a notice from the Philippine Stock Exchange (PSE).

The final price was reduced from the earlier maximum of PHP 20 per share after feedback from cornerstone investors including the United Kingdom’s Mobilist, the International Finance Corp. (IFC) and the Asian Development Bank (ADB).

The offer, expected to be the biggest listing in the Philippines this year, has drawn strong demand from institutional investors.

The IFC and ADB are considering investments of USD 100 million and USD 145 million, respectively. Other investors expressing interest include Robeco Switzerland Ltd. with up to USD 20 million, as well as Abrdn Malaysia Sdn. Bhd., Maven Investment Partners Ltd. – Hong Kong Branch, Maybank Asset Management Singapore Pte. Ltd. and QRT Master Fund – Torus Fund SP.

Maynilad will offer as many as 1.66 billion common shares to the public, including 24.9 million primary shares allocated for First Pacific Co. Ltd. It will also have an overallotment option of as many as 249.05 million shares and an upsize option of 354.7 million secondary shares, which could bring the total offer to 2.29 billion shares.

At PHP 15 per share, the IPO could raise as much as PHP 34.3 billion in gross proceeds, which will be used for capital expenditures and general corporate purposes, according to its preliminary prospectus.

Analysts said the final price provides a reasonable entry point for investors given Maynilad’s strong fundamentals and steady performance in the water utility sector.

“At this price, it provides a fair entry point for investors, especially considering the company’s steady position as a key player in the water utility sector,” Luis A. Limlingan head of sales at Regina Capital Development Corp., said in a Viber message. “The cautious approach could support the firm even if market sentiment fluctuates.”

The valuation appears attractive, Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message, citing the west zone concessionaire’s strong growth track record and expansion plans.

“The company has exhibited good financial performance in recent years with revenue growing an average of 21% in 2023 and 2024, and net income growing at an average of 47.6% in 2023 and 2024,” he said. “Prospects are also good given the company’s noncyclical business nature and coverage expansion plans so at PHP 15, Maynilad’s IPO is deemed attractive.”

Maynilad provides sustainable water and wastewater services across 11 cities in Metro Manila — three of which are partially covered — and parts of Cavite province.

Alfred Benjamin R. Garcia, research head at AP Securities, Inc., described Maynilad as a “stable defensive stock” that offers reliable dividends and high earnings visibility.

“We believe that the offer is prudently priced and offers modest upside to garner investor interest,” he said via Viber. “The offer size and post-IPO market capitalization also make it a prime candidate for future Philippine Stock Exchange index inclusion.”

Independent investment house Unicapital, Inc. said listing is “just the beginning” of a company’s growth journey.

“An IPO isn’t just a financial decision; it’s a transformation of your business,” Unicapital Senior Vice-President for Investment Banking Pamela Victoriano said in a statement. “By focusing on internal readiness and laying strategic groundwork during market slowdowns, companies can position themselves to seize the moment and maximize valuations as opportunities arise.”

The offer period will run from Oct. 23 to 29, with trading set to begin on Nov. 7 under the ticker MYNLD.

The IPO was initially scheduled for July but was postponed to October to give cornerstone investors more time to participate and allow potential investors to better understand the company’s operations.

Under its 25-year concession agreement, Maynilad must list its shares by January 2027.

Metro Pacific Investments Corp., which holds a majority stake in Maynilad, is one of three Philippine subsidiaries of First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds an interest in BusinessWorld through the Philippine Star Group, which it controls. — Alexandria Grace C. Magno