Vehicle sales in the first 10 months of the year continued to lag behind last year’s figures, with growth weighed down by weaker demand for passenger cars (PCs) and the popularity of more affordable transportation options, such as motorcycles, amid tighter economic conditions.

A joint report by the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and Truck Manufacturers Association (TMA) showed that car sales from January to October declined by 0.3 percent compared to last year.

Over the 10 months, the automotive industry sold 384,424 vehicles, slightly outpaced by last year’s 384,310 units.

PCs, which account for a fifth of total sales volume, remained hampered by slow uptake among Filipinos, registering a 23.2-percent drop in the period.

From end-October last year’s sales of 100,809 units, the industry sold only 77,641 PCs so far this year.

Commercial vehicles (CVs), on the other hand, sustained an upward trajectory, with 305,963 vehicles sold by the end of October compared to 283,502 units last year.

The commercial segment, which consists of vehicles typically used by businesses to transport goods, accounts for nearly 80 percent of total industry sales.

Within the CV segment, light commercial vehicle (LCV) sales posted a nine-percent growth to 225,820 units, while Asian utility vehicles (AUVs) registered a 5.1-percent climb to 70,544 units.

Heavy-duty trucks and buses rose by 46.3 percent to 825 units sold, while the light-duty category was up 9.3 percent to 5,753 vehicles. Only the medium-duty variety saw a decline, skidding 10.5 percent from 3,376 units last year to 3,021.

Based on CAMPI-TMA data, 24,265 electric vehicles (EVs) were sold in the 10-month period, with a market share of 6.33 percent.

Broken down, hybrid EVs remain the most popular with 19,739 units sold so far, while battery EVs and plug-in hybrid EVs sales reached 3,941 and 945, respectively.

Month-on-month, vehicle sales in October rose 5.2 percent to 40,014 units from September’s 38,029 units.

However, compared to the same month last year, the industry sold only 11 more vehicles this year.

The Economist Intelligence Unit (EIU) earlier noted that the slowdown in vehicle sales this year reflects the “constrained spending power” among Filipino consumers, particularly in the low- to middle-income bracket.

EIU, an international think tank, said higher poverty rates across Philippine cities indicate that spending power remains weakened, such that willingness to make big purchases such as vehicles could still take more time to recover.

Sought for comment, Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort cited the surge in motorcycle sales this year as the reason behind the slow growth of four-wheel sales.

Ricafort said Filipinos gravitate more toward motorcycles, especially “in terms of lower acquisition costs, maintenance costs, fuel consumption, and space requirements.”

He also noted that unfavorable weather conditions in recent months, such as typhoons and earthquakes, further reduced vehicle sales as many dealerships were forced to shut down for a number of days.

“Better weather conditions towards the end of 2025, especially into the Christmas holiday spending season, would help fundamentally support increased demand for/sales of vehicles,” Ricafort said.

The automotive industry is aiming to reach 500,000 sales this year, up from 467,252 units last year.

By the end of October, Toyota Motor Philippines Corp. remained the industry’s dominant player with nearly half the market, selling a total of 185,201 units.

Mitsubishi Motors Philippines Corp. followed with an 18.97-percent market share, Ford Group Philippines with 4.86 percent, Suzuki Philippines Inc. with 4.77 percent, and Nissan Philippines Inc. with 4.73 percent.