Auto sales pulled back by 9.8% in Q1 on Middle East crisis
Automotive sales hit a speed bump in the first quarter of 2026, falling 9.8 percent year-on-year as a global oil supply crunch linked to the ongoing Middle East conflict weighed on demand following a record year in 2025.
Car brands sold a total of 105,642 units in the first three months of the year, down from 117,074 in the same period last year, according to joint data released by the Chamber of Automotive Manufacturers of the Philippines, Inc. (Campi) and the Truck Manufacturers Association (TMA) on Monday.
Sales in March alone declined 10.4 percent to 36,104 units, although it marked the industry’s strongest monthly performance so far this year.
This overall slowdown came despite a sharp rise in electric vehicle (EV) sales, which surged 36.2 percent in the first quarter to 11,800 units, reflecting growing consumer interest in alternatives amid volatile fuel prices.
In March—the first full month since the escalation of the United States and Israel’s war with Iran—EV sales jumped 224.4 percent to 6,148 units, driven largely by hybrids, which accounted for 3,667 units.
Consumer shift
Campi president Jose Maria Atienza said the figures point to a shift in consumer behavior as buyers become more receptive to electrified technologies.
“xEV adoption is mainly driven by users’ growing understanding and acceptance of electrified technologies,” Atienza said. “We expect this to grow further because of the country’s need for various energy-efficient vehicles.”
He added that sustained volatility in oil markets could further reshape vehicle demand.
“This will not only accelerate the preference for electrified vehicles but may also highlight the practicality of energy efficient vehicles like smaller and lower displacement cars,” he said. “The auto industry will evolve based on the market’s requirement.”
EVs now account for 17 percent of the Philippine automotive market, according to Campi.
Top brands
Toyota Motor Philippines Corp. remained the dominant player across both conventional and electrified segments, selling 5,471 hybrid units in the first quarter. Its total sales reached 51,922 units, accounting for 49.15 percent of the market.
Vietnam’s VinFast Auto Philippines Corp. led the battery EV segment with 1,171 units sold, while Jetour Auto Philippines Inc. topped the plug-in hybrid category with 550 units.
By segment, heavy-duty trucks and buses recorded the steepest decline, dropping 48.4 percent to 131 units. Commercial vehicles, which make up the bulk of sales, fell 7.8 percent to 85,491 units.
Including sales from dealers outside Campi and TMA, total industry sales were estimated at around 112,500 units in the first quarter, with March sales exceeding 39,000 units.
Cyber trends shaping our world in 2026