Vehicle sales in the Philippines remained sluggish, growing by only 1.7 percent in May, the lowest growth rate in over a year, as demand for passenger cars continued to weaken.

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 five months of the year reached 190,429 units.

In contrast, 187,191 cars were sold in the country from January to May last year.

At a growth rate of only 1.7 percent, this marks as the slowest increase in sales since the 1.6 percent growth in March of 2024

The slow growth in May is seen as a continuation of the decline in the previous month of 2.5 percent, which dipped from the 6-percent growth in March.

However, taking into account May alone, car sales rebounded with 39,775 units, up 18.4 percent from 33,580 in April.

This is a strong turnaround from last month’s sales, which fell 10 percent from 40,306 units in March.

CAMPI President Rommel Gutierrez said this recovery was driven in large part by the popularity of the commercial vehicle segment.

Commercial vehicles, typically used by businesses to transport goods, saw 31,880 units sold in May. This is a 17.7-percent hike from the previous month’s 27.082 units.

In the first five months of the year, the segment notched 151,704 units, which jumped 10 percent from 137,944 during the same period in 2024.

“We are encouraged by the industry’s sustained growth, especially with commercial vehicles driving overall performance, said Gutierrez.

“This reaffirms the significant role of the automotive sector in supporting the country’s economic activities,” he added.

On the other hand, passenger cars continue to decline, recording 38,725 sales by the end of May, compared to 49,247 units in the prior year.

Nonetheless, there are positive signs for the segment as last month saw sales reached 7,895, which is a 21.5-percent improvement from 6,498 in April.

Joint CAMPI-TMA data also showed a rising demand for electric vehicles (EVs), with last month racking up 3,613 units versus April’s 1,509 units.

Over the five-month period, 10,433 EVs have been sold in the country.

Gutierrez said this signals a more positive second half of the year, with the market’s continued recovery deemed to be already underway.

“Continued collaboration between government and industry stakeholders will be key to sustaining this growth,” he added.

For the first five months of the year, Toyota Motor Philippines Corp. remains the industry’s most dominant player with 48.13 percent market share, selling a total of 91,652 units.

Mitsubishi Motors Philippines Corp. followed this with a 19.23-percent market share, Nissan Philippines Inc. with 5.19 percent, Suzuki Philippines Inc. with 4.68 percent, and Ford Group Philippines at 4.49 percent.