EVs continue to defy auto sales downturn

Philippine car sales showed signs of recovery at the start of the third quarter, with July emerging as the industry’s strongest month of 2026 so far, but sales still ended 2.5 percent lower than a year earlier.

Data from the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and Truck Manufacturers Association Inc. (TMA) released on Tuesday showed member companies had sold 37,319 vehicles in July, down from 38,295 units in the same month last year.

Still, this marked a slight uptick from the 37,079 units sold in June 2026.

Including estimated sales from nonmember brands, the groups said total Philippine vehicle sales reached 42,880 units in July, the highest monthly tally so far in 2026 and the first time monthly industry sales posted annual growth this year.

“With this continuous growth, the industry is riding on a good momentum,” Campi president Jose Maria Atienza said in a statement.

That July performance brought overall sales for the first seven months of 2026 to 241,725 units, still 10.2 percent lower than the 269,207 units sold in the same period last year, as the Philippine automotive industry took a hit from soaring fuel prices stemming from the Middle East conflict that had begun in late February.

Bright spot

While the industry began the year with a 500,000-unit sales goal, Atienza conceded in May the target may already be out of reach due to tempered consumer demand, with the Middle East crisis emerging as the “biggest factor” behind the industry’s sluggish performance.

Since the start of the crisis, the electric vehicle (EV) segment has been the lone bright spot for the Philippine automotive industry.

From January to July, electrified vehicle sales reached 38,286 units, more than double the 16,195 units sold in the same period last year.

In July alone, EV sales surged 161.8 percent to 7,086 units from 2,707 units in the same month in 2025.

Atienza said “the shift to electrification continues to accelerate,” with EVs accounting for 29.5 percent of the overall automotive market in July.

Of all EV segments, battery electric vehicles saw the largest jump in July, with sales surging 1,315.7 percent to 2,520 units from just 178 a year earlier. Plug-in hybrid EV sales reached 1,602 units, up 1,151.6 percent, while hybrid EV sales climbed 23.4 percent to 2,964 units.

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Overall, Toyota Motor Philippines remained the market leader with 17,797 units sold during the month, followed by Mitsubishi Motors Philippines with 6,271 units and Suzuki Philippines with 1,689 units.

In the battery EV segment, VinFast led July sales with 813 units. Toyota, meanwhile, dominated hybrid EV sales, selling 1,709 units in July and accounting for 57.66 percent of the segment.

Jetour Auto Phil. Inc. led the plug-in hybrid EV segment with 491 units sold during the month.

Looking ahead, Atienza said he was “hopeful that the positive trend will continue for the remainder of the year.”

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