Philippine vehicle sales rise 2% in December

Vehicle Sales Overview - New vehicle sales in the Philippines increased by 2% to 42,870 units in December 2025 from 42,044 units in December 2024, indicating a slight market growth despite recent slowdowns [1] - The total vehicle market for 2025 saw a minor decline to 463,646 units from 467,252 units in 2024, with commercial vehicle sales rising by 7% to 370,722 units, while passenger car sales dropped by 23% to 92,924 units [3] Market Dynamics - The Philippine vehicle market, including non-CAMPI/TMA members, grew by 3.7% to 491,395 units in 2025 from 473,842 units in 2024, showcasing resilience in the overall market despite challenges [3] - Toyota led the market with a 5% increase in sales to 229,447 units, driven by strong demand for its Hilux and Avanza/Veloz models, while other brands like Mitsubishi, Suzuki, Ford, and Nissan experienced varying sales changes [4] Electrified Vehicle Segment - Sales of electrified vehicles surged by 142% to 58,903 units in 2025, with hybrid vehicles making up approximately 90% of this total, reflecting a growing consumer interest in sustainable options [5] - The government's expansion of the EO12 zero-tariff incentive program to include hybrid vehicles has likely contributed to this significant growth in electrified vehicle sales [5] Economic Context - Economic growth in the Philippines is projected to have stabilized in Q4 2025, following a slowdown to 4.4% year-on-year in Q3, influenced by increased government spending due to severe weather-related flooding [2] - For the full year, GDP growth is estimated at 4.7%, down from 5.7% in 2024, indicating a challenging economic environment despite a reduction in the central bank's benchmark interest rate by 200 basis points to 4.50% [2] Future Projections - GlobalData forecasts a continued growth in the light vehicle market, expecting a 4% increase to 493,000 units in 2026 and a further 5% growth to 517,000 units in 2027, driven by consumer response to lower interest rates [6]