Q1 overall PH car sales down–yet xEVs surge
The overall Philippine automotive sales in the first quarter of 2026 experienced a steep decline with total sales falling 9.8 percent to 105,642 units compared to the 117,074 units sold in the same period in 2025.
This slowdown is particularly brought about by the ongoing crisis ignited by the Middle East conflict.
March sales performance dropped by 10.4 percent to 36,104 units compared to that of March 2025.
Particularly, commercial vehicle sales fell to 85,491 units, a 7.8-percent decline compared to the same period in 2025. Likewise, passenger car sales dove by 17.2 percent to 20,151 units.
xEVs surge
Despite the overall market decline, electrified vehicles (xEVs) continued to surge by 36.2 percent to 11,800 units in Q1 2026 compared to 8,664 in Q1 2025. Overall, the xEV market share increased to 11.1 percent.
xEV sales reached 6,148 units in March, more than doubling the 3,054 units sold in February—a month-on-month increase of 101.3 percent.
Based on the industry data, this surge means electrified options now represent 17.03 percent of the total motor vehicle market, up significantly from the same period last year when they held just a 7.4 percent share.
Significantly, March EV breakdown revealed that hybrid electric vehicles (HEVs) continue to lead the pack with 3,667 units sold, a 48.5 percent increase from February.
Battery electric vehicles (BEVs), meanwhile, posted the most explosive monthly growth, skyrocketing 485.9 percent to 1,787 units. Plug-in hybrid electric vehicles (PHEVs) likewise garnered 694 units sold, representing a 148.7 percent monthly jump.
According to the president of Auto Icon’s dealer group, Atty. Albert Arcilla, the xEVs inside their showrooms, located particularly along Zapote Road in Alabang, Muntinlupa City, were emptied following the sudden big demand for these types of vehicles.
“Because people still need to work and since we still don’t have a proper mass transport system out there, people are scrambling for a quick alternative amid the ongoing fuel crisis,” he shared during an exclusive phone interview with Inquirer Motoring.
He said people, pre-crisis, only saw xEVs for their lofty ideals, like saving the environment, sustainability and whatnot. Nowadays, they see it as a “real alternative”.
“These electrified vehicles, like an entry-level Chinese car, have become a quick solution for a cost-effective way to counter high fuel prices,” he continued.
Arcilla even added that even after the fuel crisis, people have really considered xEVs nowadays to feel what the future would actually be like.
“It sort of fast-tracked what was projected before to about 5 to 10 years earlier. We just hope our charging stations will keep up with the rising purchases for full electrics.”
Other electric markets
In Vietnam, for example, reports say that Vinfast, listed on the Nasdaq, saw a 127 percent surge in annual sales in Vietnam in March, reaching 27,600 cars.
About 40 percent of cars sold in Vietnam in 2025 were electric, but the trend has been accelerating.
At the recent Bangkok International Motor Show in Thailand, meanwhile, reports said that BYD secured the most orders of any manufacturer, surpassing Japan’s Toyota for the first time.
“The company told analysts that it now expects to exceed 1.5 million exported vehicles in 2026, well above the 1.3 million target announced in January,” one report stated.
Moreover, xEVs are gaining momentum beyond Southeast Asia, saying that Capital Economics reported that registrations of electric vehicles in Japan, South Korea, and New Zealand more than doubled in March, and rose by over 50 percent in India, Australia.
