The local automotive industry remains on track to reach its target of selling 500,000 vehicles by the end of the year despite a 10-percent sales drop in January, according to the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI).

A joint report by CAMPI and the Truck Manufacturers Association (TMA) showed that vehicle sales reached 33,696 units last month, a double-digit decline of 10.2 percent from 37,504 units in the same month last year.

Including other available industry data, total vehicle sales for the month stood at 35,053 units, still lower than last year’s volume.

Based on CAMPI-TMA data, commercial vehicles (CVs) remained the most popular segment in January, with 27,518 units sold, or around 82 percent of total sales. Year-on-year, last month’s figures were lower by nearly eight percent compared to 29,875 units in the same month last year.

Passenger cars (PCs) posted a steeper decline of 20.1 percent, falling to 6,178 units from 7,729 units a year earlier.

CAMPI president Jose Maria Atienza said the lower sales in the month were expected following the holiday rush at the end of last year that led to a surge in purchases.

“When market seasonality adjustment is factored in, January sales level aligns with the steady pace observed during the second half of last year,” said Atienza.

Despite the decline in traditional fuel-based vehicles, he said the industry sees a bright spot in the continued growth of the electrified vehicle (EV) segment.

The joint CAMPI-TMA report showed that EVs registered a 63-percent surge to 2,610 units sold in January, compared to 1,600 units a year ago.

Hybrid EVs cornered 79 percent of the market with 2,072 units sold, followed by plug-in hybrid EVs with 277, and battery EVs with 261.

In total, the EV segment represents 7.75 percent of the industry’s total sales, an improvement from a 4.27-percent share last year.

Despite weaker sales last month, Atienza said the industry remains “on pace” to meet its full-year goal of selling 500,000 units.

Last year, CAMPI and TMA members sold 463,646 units, down 0.8 percent from the record 467,252 units in 2024.

Sought for comment, Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said improved economic indicators and better weather conditions could help boost vehicle purchases this year.

He also expects stronger demand for EVs, particularly hybrids, amid increased competition that is helping reduce prices and widen consumer options.

Last month, Toyota Motor Philippines Corp. (TMPC) accounted for the largest share in vehicle sales with 16,346 units sold, or 48.51 percent of total.

This was followed by Mitsubishi Motors Philippines Corp. (MMPC) with a 20.78-percent market share, Suzuki Philippines Inc. with 4.88 percent, Nissan Philippines Inc. with 4.72 percent, and Ford Group Philippines with 3.77 percent.