Vehicle sales in the Philippines grew by 2.5 percent in April, which marked the slowest growth in seven months, amid a sharp decline in passenger car sales.

A joint report by the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association (TMA) showed that sales in the first four months of the year reached 150,654 units.

In comparison, 146,920 cars were sold in the country from January to April in 2024.

At a growth rate of 2.5 percent, this is the slowest increase in sales since the 2.4 percent sales growth in September of last year.

Last month, car sales rose by six percent.

Taking into account April alone, the month’s sales fell 10 percent from March’s 40,306 units to 33,580.

The slowdown in sales last month is driven by the weakening demand in the passenger car segment, with 6,498 units sold, a 23-percent decline from the 8,449 units in March.

Passenger cars, which are designed to carry passengers, dipped by 19.5 percent to 30,830 units in the first four months of the year versus last year’s 38,280.

Commercial vehicles, typically used by businesses to transport goods, notched 119,824 units during the reference period. This is a 10.3-percent hike from last year’s 108,667 units.

In April, however, it faced a 15-percent reduction to 27,082 from 31,857 in the previous month.

Joint CAMPI-TMA data showed 1,509 units of electric vehicles (EVs) were sold in April, a 20.4 percent contraction from 1,895 units in March.

The four-month period saw a total of 6,820 EVs sold.

CAMPI President Rommel Gutierrez said that while the overall market trajectory remains positive, the recent slowdown in growth may be attributed to “seasonal factors, economic conditions, or evolving consumer demands.”

“Industry leaders continue to monitor market trends and expect further developments in the months ahead,” Gutierrez said in a statement.

Sought for comment, Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said the slower growth in April could be attributed to the increased market volatility, particularly with the United States’ (US) announcement of new tariffs.

Ricafort said consumers and businesses are in a “wait-and-see” mode until the uncertainties surrounding the tariffs are finally settled.

“Some lenders could also be more prudent/careful in lending to some buyers of vehicles amid risk of economic slowdown and some job losses/lost income by some borrowers of auto loans,” he said.

Ricafort added that the election ban on government spending could also be a factor in the slow growth of sales in April, as agencies were prohibited from making vehicle purchases.

For the first four months of the year, Toyota Motor Philippines Corp. remains the industry’s most dominant player with 47.74 percent market share, selling a total of 71,927 units.

Mitsubishi Motors Philippines Corp. followed this with a 19.76-percent market share, Nissan Philippines Inc. with 5.43 percent, Suzuki Philippines Inc. with 4.65 percent, and Ford Group Philippines at 4.47 percent.