Auto industry backpedals on 500,000-unit sales goal

THE CHAMBER of Automotive Manufacturers of the Philippines, Inc. (CAMPI) said its vehicle sales target of 500,000 units for 2026 is no longer its main focus, reflecting expectations of soft demand for the remainder of the year as the Persian Gulf crisis did major damage to consumer sentiment.

“The 500,000 (target) is not our main goal for this year anymore,” CAMPI President Jose Maria M. Atienza said on Wednesday during a briefing for the upcoming 10^th Philippine International Motor Show.

“Right now, there’s a drop of around 8% to 10% in sales for the whole market (compared to the year-earlier pace). We see this situation (continuing) until year’s end,” Mr. Atienza said.

At the end of March, vehicle sales declined 9.8% year on year to 105,642 units, according to a joint report issued by CAMPI and the Truck Manufacturers Association.

“Considering what’s happening, especially the fuel crisis, our main focus is what CAMPI and each brand can do to help motorists during this time,” he said.

The Department of Energy announced on Monday another round of oil price hikes, with diesel prices expected to increase by P2.66 per liter. A corresponding increase of P2.21 per liter was projected for gasoline. The rollback of kerosene is capped at P3.53 per liter.

The Philippines imports 98% of its oil needs from the Middle East, heightening its exposure to fuel price volatilty.

Meanwhile, CAMPI expects a further increase in electric vehicle (EV) sales this year as consumers seek an alternative to internal combustion engine (ICE) vehicles.

In the first three months, EV sales rose 36.2% year on year to 11,800 units. The segment, which includes battery EVs, plug-in hybrid EVs, and hybrid EVs, accounted for 10.48% of total car sales in March.

“We’ve seen the effect of the fuel crisis on how customers or motorists choose what type of vehicles they buy, and we see this trend continuing until year’s end,” Mr. Atienza said.

Meanwhile, Mr. Atienza urged the government to keep providing fiscal support for the production of ICE-powered vehicles, noting that there is still demand for such cars.

“As a growing economy, there’s also demand for other types of vehicles, including ICE vehicles. So, government support for manufacturing should be broader,” he told reporters on the sidelines of the event.

The Department of Trade and Industry dropped its Revitalizing the Automotive Industry for Competitiveness Enhancement program, which aimed to incentivize domestic ICE vehicle production, as the government shifts its support toward EV makers.

Asked to comment, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said EV sales are expected to make up a bigger percentage of total vehicle sales in the coming months.

“Sales of ICE vehicles could continue to decline in the coming months amid the sharp increase in diesel and gasoline prices due to the Middle East war. However, this would be positively offset by more sales of EVs, which is expected to take up a bigger share of total vehicle sales,” he said via Viber.

CAMPI is mounting the 10^th Philippine International Motor Show from June 4 to 7, 2026 at the World Trade Center Metro Manila in Pasay City.

This year’s participating brands are Toyota Motor Philippines Corp., Honda Cars Philippines, Inc., Isuzu Philippines Corp., UAAGI Auto, Inc. (BAIC), United Asia Automotive Group, Inc. (Chery), Foton Motor Philippines, Inc., Geely Motor Philippines Corp., Jetour Auto Philippines, Inc., KP Motors Corp. (Kia Philippines), SAIC Motors Philippines, Inc., (MG), Mitsubishi Motors Philippines Corp., Nissan Philippines, Inc., Omoda and Jaecoo Motor Philippines, Inc., Motor Image Pilipinas, Inc. (Subaru), Suzuki Philippines, Inc., Tesla Motors Philippines, Inc., and Vinfast Auto Philippines Corp.

More than 150 vehicle models will be on display and available for test drive at the event, according to Elvin C. Luciano, CAMPI Public Relations Committee head.

The groups also expects EV models to account for more than half of the models showcased, he added. — Beatriz Marie D. Cruz