By Justine Irish D. Tabile, Reporter
THE CHAMBER of Automotive Manufacturers of the Philippines, Inc. (CAMPI) is eyeing a 5% growth in vehicle sales next 12 months amid improving supply chains, introduction of recent models, and public acceptance of electrified vehicles (EVs).
CAMPI President Rommel R. Gutierrez told reporters on Friday that the industry is on target to satisfy the five hundred,000 sales goal for this 12 months.
“Next 12 months, it must be higher… On average [we are growing] 5%… I feel 5% will likely be a conservative figure. We are going to maintain (this),” he said.
If CAMPI and the Truck Manufacturers Association (TMA) achieve its 500,000 sales goal this 12 months, a 5% growth would mean vehicle sales of 525,000 in 2026.
The newest industry report showed latest passenger automobile sales stood at 383,424 units as of the top of October, making up 76.68% of the goal set for the 12 months.
Mr. Gutierrez said sales growth will likely be driven by the advance in supply, introduction of recent vehicle models, and the broader adoption of EVs.
For next 12 months, Mr. Gutierrez said he expects more sales of EVs, which is on target to account for 12% of the industry’s total sales this 12 months.
“I feel that was the goal, and I feel it is feasible even next 12 months, and even higher. Even the Vios model now has a hybrid, so we’re moving towards that,” he said. “And I feel we see that customers are already embracing and accepting EVs greater than ever.”
In CAMPI’s report, total EV sales hit 24,265 units in the primary 10 months, accounting for six.33% of the overall industry sales. Nonetheless, it is necessary to notice that some automobile manufacturers should not members of CAMPI and TMA, whose sales is not going to be reflected within the industry groups’ report.
Meanwhile, Mr. Gutierrez said automobile sales may additionally be driven by rising demand for ride-hailing services.
“Those drivers buy vehicles to make use of for ride-hailing services… There’s really loads more potential… The more the players, the merrier,” he added.
Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said that the 5% growth in sales is plausible and “reflects a rebound narrative that has been constructing over the past couple of years.”
“After several years of elevated vehicle prices, supply-chain constraints, and tighter consumer credit, the industry saw improved affordability and inventory normalization in 2025, contributing to stronger sales,” he said in a Viber message.
“If those conditions persist into 2026, a 5% uptick is affordable — especially if consumer confidence stays stable, financing costs ease barely alongside broader monetary easing, and manufacturers proceed to introduce refreshed models that attract buyers,” he added.
Other growth drivers include urbanization, rising middle-class incomes, and infrastructure improvements, Mr. Arce said.
“I find CAMPI’s 5% growth outlook for 2026 credible if economic conditions remain broadly supportive — stable consumption, manageable rates of interest, and regular employment will help sustain auto demand,” he said.
“Nonetheless, structural hurdles equivalent to cost of ownership, regulatory shifts, and potential macro headwinds (exchange rates, fuel prices, and credit costs) could limit upside. The industry’s performance will hinge on whether these drivers align to maintain latest vehicle purchases each desirable and inexpensive to a broad segment of Filipino consumers,” he added.
John Paolo R. Rivera, a senior research fellow on the Philippine Institute for Development Studies, said that CAMPI’s 5% sales forecast assumes easing rates of interest and a recovery in consumer confidence.
“If rates fall and incomes stabilize, sales can grow modestly but without that, upside could also be limited,” he said in a Viber message.
“Demand will likely be driven by alternative purchases, the continued expansion of ride-hailing and logistics fleets, improved availability of models, and growing interest in hybrid and entry-level vehicles,” he added.
Nonetheless, Mr. Rivera said that the industry will proceed to be challenged by high borrowing costs, the peso weakness which raises vehicle prices, and cautious household spending.
For next 12 months, Rizal Business Banking Corp. Chief Economist Michael L. Ricafort said that reduction in borrowing costs because of this of recent rate cuts would help increase demand for vehicles.
He said that the Bangko Sentral ng Pilipinas’ recent cuts, which brought the important thing policy rate to a three-year low of 4.5%, coupled with the reduction in banks’ reserve requirement ratio, have increased the loanable funds of banks.
“These are passed also when it comes to lower vehicle loan rates, which might help increase demand for vehicles, especially those financed by loans,” Mr. Ricafort said in a Viber message.
“Higher weather conditions towards the top of 2025 and into 2026, especially into the Christmas holiday spending season, would help fundamentally support increased demand for vehicles, alongside increased demand for EVs amid increased competition that helped reduce prices and increased options for Filipino buyers,” he added.
Meanwhile, CAMPI signed a memorandum of understanding with the Mental Property Office of the Philippines (IPOPHL) to go after counterfeit auto products sold online.
“We hope this will likely be a deterrent for those wanting to sell fake parts online. It is de facto for the protection of our consumers,” said Mr. Gutierrez.
The partnership will allow CAMPI members to flag counterfeit products and have the listings taken down from the web platforms.
IPOPHL data showed that two out of the 44 counterfeit-related reports it received this 12 months involved vehicle products, including fake oils and motorcycle parts.
Last 12 months, the agency received 4 vehicle-related reports involving oil, coolants, and components for the Japanese automobile brand Honda.