Middle East conflict affecting Pinoy motorists’ preference
It used to be that wars were waged for territory. But now, the escalating conflict between the United States-Israel tag team and Iran have come to the point where power and energy supplies have become the primary targets for destruction. Crippling the fuel lines means that the physical war in the Middle East will have immediate global implications, as what we are experiencing now.
While we’re thousands of kilometers away from ground zero, the figurative shockwaves of all those air and missile strikes are hitting our pumps, and pockets, in real-time. With fuel prices skyrocketing (and soon after that so will the prices of all commodities and services), car industry leaders have noticed a rising trend in customers preferring vehicles that do away with, or at least minimize the use of, fossil fuels. As the industry and all road users stand at this global crossroads, the choice between internal combustion engines (ICE) and electric vehicles (EV) is no longer just about personal preference—it is being dictated by a volatile world.
With a massive energy crisis centered in the Middle East threatening the stability of global oil, a car manufacturer’s aggressive expansion into electrified vehicles, such as that being shown by Toyota Motor Corp, can be seen as being more than just a “green” shift; it is a hedge against uncertainty. In an era where geopolitical tremors can change the cost of your commute overnight, having a diversified portfolio of hybrids and EVs isn’t just a corporate strategy; it’s a roadmap for survival and a lifestyle choice that prioritizes energy security in an increasingly unpredictable world.
February sales momentum
A few days ago, the joint auto industry data of the Chamber of Automotive Manufacturers of the Philippines Inc (Campi) and the Truck Manufacturers Association (TMA) was released. The report showed that February 2026 sales were higher than January 2026 (exceeding 37,700 vs 35,842, an increase of 6.4 percent). But that was before all hell broke loose in the Middle East.
Campi president Jose Maria M. Atienza said that compared with January figures, February’s performance provided a more stable outlook—a welcome development after the market drop during the second half of last year. But then he also noted that “the Middle East conflict is affecting how Filipino motorists choose and use their cars,” adding that “Campi members have been expanding and diversifying their product lineups with energy-efficient and electrified options, allowing them to offer more economical choices to customers.”
“This aligns with the ongoing trend highlighting growing customer preference for electrified vehicles month-on-month. In February, Campi-TMA members sold 3,098 electrified vehicles, 18.7 percent higher than the 2,610 sold in January,” Atienza said.
Trucks and frugality
TMA president Robert Carlos, in a separate interview, said that “frugality” in the current climate means designing trucks that consume less fuel without sacrificing payload, staying on the road longer, and costing less to maintain.
“This is why TMA member brands continue refining modern turbo‑diesel platforms and improving uptime through stronger service networks and parts availability,” said Carlos. “But today, fuel efficiency alone isn’t enough. With diesel prices pushed even higher by global conflict and supply volatility, operators now demand efficiency supported by after‑sales reliability. Every hour a truck is down is revenue lost, so parts pipelines, predictable servicing, and lower downtime are now just as important as fuel savings.”
The VinFast perspective
During last week’s online interview with VinFast Southeast Asia CEO Antonio “Toti” Zara, I asked if the Vietnamese EV maker sees the current Middle East crisis as a “Black Swan” event for the industry. I also asked if EVs can genuinely guarantee lower running costs today, or if we are simply trading oil anxiety for concerns about charging infrastructure and higher vehicle prices.
Zara replied, “VinFast does not view geopolitical tensions or fuel price volatility as a ‘Black Swan’ event for the EV industry. The transition toward green mobility is a long-term global trend that has been underway for many years, driven by technological progress, energy security considerations, and environmental priorities.
“Electric vehicles may not eliminate all uncertainties, but they help motorists reduce dependence on one of the most volatile costs in transportation: Oil prices,” Zara added. He explained that for countries that rely heavily on imported petroleum, such as the Philippines, fluctuations in global energy markets translate quickly into higher costs for consumers. In comparison, EVs offer advantages in total cost of ownership thanks to lower energy and maintenance costs, though broader adoption requires the continued expansion of charging infrastructure.
Multi-pathway approach
In a separate online interview, Atienza—who is also Toyota Motor Philippines (TMP) executive vice president—said that “the current fuel crisis stresses the need for wider availability of energy-efficient vehicles.”
Atienza stated that “Toyota continues to pursue its multi-pathway approach toward carbon neutrality aligned with the requirements of the local market. Aside from the increasing lineup of electrified vehicles, Toyota’s roster includes various small and low-displacement vehicles appropriate for the times. More importantly, we encourage Filipinos, whatever car models they may drive, to exercise fuel and energy-saving driving habits at all times.”
Last March 17 and 18, 36 media members and content creators joined the teams from TMP and Lexus Philippines to drive 20 electrified vehicles (two battery electric vehicles and 18 hybrid electric vehicles). The “Go Electrified” ride-and-drive was a deep dive into the future of local mobility, aligned with Toyota’s Beyond Zero initiative. This isn’t just about EVs; it’s a strategy aimed at carbon neutrality by 2050, deploying a mix of HEVs, PHEVs, BEVs, and eventually other powertrains.
I was happy to see Toyota’s first two BEV offerings for the Philippines, the bZ4X and the Urban Cruisers. However, the most talked-about model among the media was the all-new RAV4, now exclusively available as a hybrid. I personally prefer the RAV4’s Adventure variant because it uses SofTex—a lightweight, eco-friendly material not sourced from animal skin.
Isuzu’s milestone
Speaking of after-sales services, Isuzu Philippines Corp (IPC)—where Carlos serves as the division head for sales—together with dealer principal Iconic Dealership Inc (IDI) and ACMobility, officially opened Isuzu Mandaluyong on March 5. This marks the 50th Isuzu dealership nationwide, completing IPC’s “Road to 50” campaign.
The new facility shows a serious commitment to after-sales service, featuring a dedicated consumer welfare desk, a customer lounge with café amenities, an extensive parts section, among others.
End of ‘unrestrained internal combustion’?
History shows that Philippine automotive trends are often forged in times of fuel crises. I asked Campi and TMA if March 2026 marks the definitive end of the “unrestrained internal combustion” era in the Philippines, and how they are re-tooling their 2026-2027 strategy to ensure that triple-digit fuel prices at the retail pumps don’t render current inventories obsolete.
Atienza responded: “The Philippine automotive sector has been evolving… the availability of electrified and energy-efficient vehicles is now at its highest and is expected to further increase. Campi supports each individual brand’s technology initiatives and looks forward to even more clean and green vehicles.”
Carlos added that while electrification will play a larger role, the transition will not be uniform, especially for commercial trucks. “We are carefully evaluating the best approach for commercial trucks. Our primary focus is ensuring that the infrastructure, support systems, and consumer readiness are in place… that means continuing to improve fuel‑efficiency in diesel trucks and keeping operational costs predictable for the logistics and construction sectors that rely on them every day.”
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