Carmakers put brakes on 500K sales target

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May 7, 2026 | 12:00am

But hybrid, EV takeup gaining speed

MANILA, Philippines —  Vehicle sales in the country are expected again to fall short of the 500,000-unit target this year as high fuel prices driven by the Middle East war continue to weigh on demand.

The Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI), however, expects sales of electrified vehicles (xEVs) to rise further amid shifting consumer preferences.

While the official 2026 forecast has yet to be released, CAMPI president Jose Maria Atienza said the industry has already seen a decline in car sales.

“Personally, I was expecting a bigger drop given the very big increases in fuel prices,” Atienza told reporters yesterday, hinting at a potential double-digit decrease in sales volume.

In the first quarter, vehicle sales went down by 10 percent to 105,642 units from the 117,074 units sold a year earlier, data from CAMPI and the Truck Manufacturers Association show.

Although gas-powered car sales slowed, the industry saw a bright spot in xEVs, with sales rising by 36 percent to 11,800 units from 8,664 units previously.

Atienza, also executive vice president of Toyota Motor Philippines Corp.’s marketing division, said brands could adjust their product mix to capitalize on growing interest in xEVs.

“We’ve seen the effect of the fuel crisis and the effect of this on how customers would want to choose what type of vehicles they’d like. We see this trend continuing until year-end,” the CAMPI president said.

“But again, it would depend on how each brand is able to change in their mix and how much they can import. We see that the only way for it is the electrified vehicle mix will go up,” he added.

After the United States and Israel launched a military campaign against Iran, the Philippines saw record domestic pump prices, with diesel reaching as high as P170 per liter at the height of the war.

Despite recent rollbacks, fuel prices remain elevated amid continued supply disruptions caused by restrictions in the Strait of Hormuz, a critical maritime chokepoint that typically carries around 20 percent of global oil and gas supplies.

Against this backdrop, CAMPI is set to hold its 10th Philippine International Motor Show from June 4 to 7 as part of efforts to showcase a wide range of vehicle options, from internal combustion engines to hybrids and EVs.

The event will feature at least 17 brands, including BAIC, Chery, Foton, Geely, Honda, Isuzu, Jetour, Kia, MG, Mitsubishi Motors, Nissan, Omoda & Jaecoo, Subaru, Suzuki, Tesla, Toyota and VinFast.