Rising sales of electric vehicles (EVs) were not enough to offset an overall decline in the country’s automotive market during the first quarter of 2026. This downturn occurred primarily because higher fuel costs weighed heavily on consumer demand.
According to industry data, total vehicle sales reached 105,642 units from January to March 2026. That figure represents a 9.8 percent drop compared to 117,074 units recorded in the same period last year.
For context, the data was released jointly by the Chamber of Automotive Manufacturers of the Philippines, Inc. (Campi) and the Truck Manufacturers Association on Monday.
Why Did Overall Car Sales Decline?
The slowdown came as global oil supply disruptions — linked directly to the ongoing Middle East conflict — pushed fuel prices higher. As a result, many consumers delayed or canceled vehicle purchases.
Nevertheless, commercial vehicles continued to account for the bulk of sales, with 85,491 units sold. However, even this segment declined by 7.8 percent from 92,472 units a year earlier.
EVs Were the Only Segment to Post Growth
In contrast, electric vehicles stood out as the only segment showing positive growth. Specifically, sales of electrified vehicles climbed 36.2 percent to 11,800 units — up significantly from 8,664 units in the first quarter of 2025.
Moreover, plug-in hybrid models led the category by recording 1,250 units sold. That marks an astonishing increase of 924.6 percent year on year.
What Industry Leaders Are Saying
Campi President Jose Maria Atienza expressed optimism about the future of EVs. He explained that electrified vehicles are expected to capture a larger portion of the market, especially as elevated fuel prices push consumers to consider more energy-efficient options.
Furthermore, Atienza noted that the continued rise in EV adoption reflects growing consumer awareness and acceptance of electrified technologies. Therefore, this trend could accelerate even further in the coming years.
Toyota Remains the Top Player
Meanwhile, Toyota Motor Philippines Corp. remained the industry’s undisputed leader during the period. The company sold 51,922 units, thereby accounting for 49.15 percent — or nearly half — of the entire Philippine automotive market.
Bottom Line
Although the overall automotive market dipped in Q1 2026, the sharp rise in EV sales signals a clear shift in consumer preferences. Consequently, as fuel prices remain volatile, more Filipino car buyers are likely to embrace electrified vehicles in the near future.
