An automotive industry executive on Wednesday, May 6, 2026, projected a possible 10-percent decline in vehicle sales this year due to the impact of the Middle East crisis, while pointing to stronger growth prospects for electric vehicles (EVs).
2025 Sales Performance and 2026 Target
In 2025, domestic car sales rose 3.7 percent to 491,395 units, driven by aggressive promotions and increasing demand for EVs. The Chamber of Automotive Manufacturers of the Philippines (Campi) had earlier set a target of 500,000 units for this year.
However, Campi president Jose Maria Atienza, during a briefing on Wednesday, said the goal may be difficult to achieve amid rising fuel prices. He noted that industry players remain focused on sustaining growth but are no longer fixated on hitting a specific sales target. Instead, companies are prioritizing how best to support customers and motorists.
First Four Months Decline
Atienza said sales declined by around eight to 10 percent in the first four months of the year and expects this trend to persist through the rest of 2026. “It should go down from last year, but please also wait for the final forecast,” he said.
Automotive sector officials are hopeful that the 10th Philippine International Motor Show, scheduled from June 4 to 7 at the World Trade Center in Pasay City, will help boost sales.
Electric Vehicle Growth
Atienza added that while overall industry growth may slow, the outlook for EVs remains positive. He said there is no specific growth forecast for EVs, but their share of total sales is expected to rise from about 10 percent last year. “We’ve all seen how this trajectory of [EVs] was increased from zero, almost zero, maybe five years ago, to now 20 percent for March and probably for April, is around 25 percent,” Atienza said.
The executive emphasized that the industry is adapting to the changing market dynamics, with a greater focus on sustainability and customer needs. The shift toward EVs is expected to continue as consumers become more conscious of fuel costs and environmental concerns.
