Philippine car sales down 7.6% in August

Philippine vehicle sales declined year on year in August to the lowest volume in four months, dragged by weaker demand for both passenger and commercial cars, according to industry data.

A joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) showed total vehicle sales fell by 7.6% from a year earlier to 36,174 units last month.

The drop was the slowest since the 10% decline in April, and the lowest volume since the 33,580 units sold that same month. On a monthly basis, vehicle sales slid 5.5% from 38,295 units in July.

“Despite a modest dip in month-on-month figures, the industry remains optimistic, driven by evolving consumer preferences and a growing shift toward sustainable mobility,” CAMPI said in a statement on Tuesday.

Passenger car sales, which made up over a fifth of industry volume, slumped 20% year on year to 7,591 units in August. Compared with July’s 8,120 units, passenger car sales were down 6.5%.

Commercial vehicle sales, which accounted for almost four-fifths of total sales, fell 3.5% to 28,583 units in August from a year earlier. This was also 5.3% lower month on month.

Within the commercial vehicle segment, light commercial vehicle sales dropped 4.4% year on year to 20,852 in August, while sales of Asian utility vehicles (AUV) inched up 0.2% to 6,840 units.

Month on month, light commercial vehicle sales were down 7.4%, while AUV sales rose 2.6%.

Sales of light- and medium-duty trucks and buses fell 11.6% and 10.6% year on year to 555 and 279 units, respectively, while sales of heavy-duty trucks and buses rose 26.7% to 57 units. Compared with July, sales of light, medium, and heavy trucks fell 8.6%, 7.6% and 27.8%, respectively.

From January to August, new car sales edged up by 0.2% to 305,381 units from a year ago. The growth was supported by commercial vehicles, whose sales rose 8.7% to 244,023 units. Passenger car sales, on the other hand, dropped 23.6% to 61,358 from a year earlier.

CAMPI said commercial vehicles remained the anchor of industry sales, while electrified vehicles (xEVs) gained traction, now accounting for 6% of the car market.

The industry sold 2,244 xEVs in August, or 6.2% of total sales, though this was down 17.1% from the 2,707 sold in July. From January to August, xEV sales reached 18,439 units, representing 6.04% market share.

Broader global and domestic risks are weighing on auto sales, said Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.

“Protectionist policies, tensions in the Middle East and other geopolitical risks are headwinds that reduce sales, incomes, employment and other business opportunities,” he said in a Viber message. “That could reduce the ability to pay by borrowers, including those with auto loans.”

He also cited the Chinese “ghost month” belief, saying it might have discouraged some buyers in August.

Still, he expects better prospects in the coming months. “Better weather conditions would help improve vehicle sales data, especially towards the Christmas holiday season, amid lower interest rates that help increase demand for vehicles and auto loans,” he added.

The August figures show weaker demand across segments, John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, told BusinessWorld.

“Key drivers include higher interest rates, which make financing costlier, inflation edging up again, and consumer caution ahead of the ‘ber’ months,” he said in a Viber message.

He added that while the holiday season could spur some recovery through promotions and increased spending, the rebound might be modest given inflation, peso volatility and trade uncertainties tied to US tariffs.

Toyota Motor Philippines Corp. remained the dominant player with 146,357 units sold from January to August, up 4.1% from 140,654 units last year. It had a 47.93% market share.

Mitsubishi Motors Philippines Corp. ranked second with 57,908 units sold, down 1% from 58,513 units. Its market share was 18.96%.

Nissan Philippines, Inc. placed third with 15,160 units sold, down 17% year on year, accounting for 4.96% of the market.

Ford Motor Co. Philippines, Inc. sold 14,940 units, down 21.2%, while Suzuki Philippines, Inc. sold 14,519 units, up 9.9%. — Justine Irish D. Tabile, Reporter