By Justine Irish D. Tabile, Reporter

PHILIPPINE AUTOMOTIVE sales are expected to reach 500,000 units in 2025, according to the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI).

A joint report by CAMPI and Truck Manufacturers Association (TMA) on Thursday showed vehicle sales jumped by 10.4% to 37,604 units in January from a year ago’s 34,060 units.

Month on month, sales fell by 10.6% from 42,044 units sold in December when demand is typically higher.

“With yet another good performance in January 2025 sales, CAMPI is projecting to hit 500,000-unit sales for the year,” said CAMPI President Rommel R. Gutierrez in a statement on Thursday.

“Newly rolled out models and the anticipated introduction of new models are some of the factors that will contribute to achieving this target,” he added.

The industry’s sales target of 500,000 would represent a 7% year-on-year increase from the record-high 467,252 units sold in 2024.

CAMPI-TMA data showed passenger car sales slipped by an annual 8.5% to 7,729 units in January from 8,446 units a year ago. Month on month, sales of passenger cars fell by 23.7% from 10,125 units in December.

Meanwhile, commercial vehicle sales climbed by 16.6% to 29,875 from 25,614 in the same month a year ago. This accounted for 79.5% of the industry’s total sales.

Month on month, sales of commercial vehicles declined by 6.4% from 31,919 units sold in December.

Broken down, light commercial vehicle sales went up by 17.8% to 22,350 units, while Asian utility vehicle (AUV) sales rose by 13.7% to 6,698. Sales of light commercial vehicles and AUVs declined on a month-on-month basis by 7.3% and 1.9%, respectively.

Sales of light trucks surged by 20.6% to 497 in January but dropped by 19.3% month on month. Medium truck sales were down 7.4% year on year to 261 and 5.4% down from December.

Sales of heavy trucks increased by an annual 9.5% to 69 in January but dropped by 30.3% month on month.

Electric vehicle (EV) sales stood at 1,600 units in January, which was composed of 1,445 hybrid EVs, 146 battery EVs and nine plug-in hybrid EVs.

“Car sales in January 2025 likely reflected a combination of strong consumer demand, improved supply chain conditions, and continued economic recovery,” John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said in a Viber message.

Mr. Rivera said the industry’s 7% sales growth target is achievable but may be dampened by risks such as inflation, higher fuel costs, and trade disruptions.

“A 7% increase is within reach, but several risks could affect the projection. If inflation or interest rates unexpectedly rise, it could dampen consumer spending,” Mr. Rivera said.

“Higher fuel costs or stricter regulations through emissions standards and excise taxes could slow demand. While supply chain bottlenecks have eased, any disruptions in global trade or manufacturing could impact inventory levels,” he added.

Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said that the 7% sales growth target is “achievable if the current momentum continues.”

“However, the decline in passenger car sales and potential risks from economic challenges, such as inflation or supply chain disruptions, could hinder progress,” he added.

In January, Toyota Motor Philippines Corp. remained the market leader with a 48.07% share as its sales rose by 12.3% to 18,078 units.

Mitsubishi Motors Philippines Corp. came in second with a 21.2% increase in sales to 7,374 units in January.

In third spot is Nissan Philippines, Inc. which saw a 3.9% decline in sales to 2,366 units.

Rounding out the top five were Suzuki Phils., Inc., which saw a 19.9% increase in sales to 1,781 units, and Ford Motor Company Phils., Inc. whose sales dropped 36.1% to 1,577 units.