Vehicle sales flat in October despite rising EV demand

Vehicle sales hit just over 40,000 in October, as rising demand for electric vehicles (EVs) failed to offset the decline in passenger car sales, 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 inched up by 0.03% or 11 units to 40,014 in October from 40,003 units in the same month a year ago.

Month on month, vehicle sales went up by 5.2% from 38,029 units sold in September.

Passenger car sales declined by 18.8% to 8,155 units in October from 10,044 units sold in the same month in 2024. Month on month, passenger car sales edged up by 2.6%.

Meanwhile, sales of commercial vehicles, which accounted for 79.62% of October sales, rose by 6.3% to 31,859 units from 29,959 units a year ago.

Month on month, commercial vehicle sales increased by 5.9%.

Under the commercial vehicle segment, light commercial vehicle sales grew by 3% to 22,471 units, while Asian utility vehicles (AUV) rose by 17.2% to 8,309. On a monthly basis, sales of light commercial vehicles and AUVs climbed by 6.5% and 4.6%, respectively.

Sales of medium-duty trucks and buses declined by an annual 6.4% to 352 in October, while light- and heavy-duty vehicles grew by 6.4% and 10%, respectively, to 661 and 66 units.

Compared with September, light-duty truck sales increased by 12.2%, while medium- and heavy-duty truck sales fell by 5.1% and 4.3%, respectively.

Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said that auto industry sales are being impacted by elevated interest rates and shifting consumer preferences.

“This stagnation is largely attributable to the continued slump in passenger car sales — a sharp contraction that reflects weakening demand for sedans and hatchbacks amid high interest rates earlier in the year and a clear consumer preference shift toward crossovers, sport utility vehicles, and commercial vehicles,” he said in a Viber message.

For the January-to-October period, new vehicle sales slipped by 0.2% to 383,424 from 384,310 units a year ago.

Passenger car sales fell by 23.2% to 77,461 in the first 10 months from 100,809 in the same period last year.

On the other hand, sales of commercial vehicles went up by 7.9% to 305,963 units from 283,501 a year ago.

In the first 10 months, the industry has already achieved 76.68% of its 500,000 sales target for the year.

Bright spot

Meanwhile, electric vehicles remained a bright spot for the industry.

In October, EV sales jumped by 62% to 3,603 units from 2,223 units in September. This accounted for 9% of the total market.

Sales of hybrid EVs (HEV) surged by 73.9% to 3,044 units in October from 1,750 HEVs sold in September.

Sales of plug-in hybrid electric vehicles (PHEV) soared by 192.6% to 275 units in October from 94 in September, while sales of battery electric vehicles (BEV) declined by 25% to 284 units from 379 units in September.

For the first 10 months, EV sales stood at 24,265 units, accounting for 6.33% of the industry’s sales.

Broken down, 19,379 units of hybrid electric vehicles had been sold as of end-October, followed by 3,941 BEVs and 945 PHEVs.

“Aggressive discounting from Japanese and Chinese brands, expanding inventories of hybrid and fuel-efficient models, and strong fleet demand from ride-hailing, delivery, and provincial transport cooperatives are poised to lift overall sales,” said Mr. Arce.

He said new model launches are expected to further stimulate showroom activity.

For this year, CAMPI expects EVs to account for 4% of the total industry sales.

Toyota in the lead

Meanwhile, Toyota Motor Philippines Corp. remained the market leader, with sales of 185,201 units in the January-to-October period, up 3.8% from 178,421 units a year ago. It accounted for 48.3% of the market.

Mitsubishi Motors Philippines Corp. ranked second with a market share of 18.97% after sales dipped by 0.9% to 72,734 units in the first 10 months.

In third spot was Ford Motor Co. Phils., Inc., whose sales dropped by 20.7% to 18,631 for a market share of 4.86%.

Rounding out the top five were Suzuki Phils., Inc., which saw a 9.1% increase in sales to 18,295, and Nissan Philippines, Inc., which saw a 18.7% decrease in sales to 18,125 units.

Mr. Arce said that he expects car sales to recover in November and December.

“The final two months of the year historically deliver some of the strongest sales as brands push year-end promotions, banks ease auto loan requirements, and consumers take advantage of holiday bonuses,” he said.

Mr. Arce said recent rate cuts by the central bank will help lower financing costs, which should help revive big-ticket spending, particularly for passenger cars.

“While passenger car sales may not fully rebound before year-end, the broader industry appears well-positioned for a stronger close to 2025 as consumer confidence firms and financing conditions ease,” he added. — Justine Irish D. Tabile, Reporter