The Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) expects a five percent growth in vehicle sales for the coming year, fueled by rising adoption of electric vehicles (EVs).

CAMPI president Rommel Gutierrez said the local automotive industry is targeting at least five percent growth next year from this year’s total.

CAMPI aims to sell 500,000 units this year, with next year’s target around 525,000 units.

Based on the sales report of CAMPI and the Truck Manufacturers Association (TMA), vehicle sales stood at 383,424 units from January to October, down from 384,310 units in the same period last year.

While still awaiting two more months of data, Gutierrez said the industry group is confident it can meet the year's sales target.

“The year isn’t over yet, so we will gather all the data…but from all indications, it seems that we will be able to reach 500,000 units,” he told reporters last week.

If this is realized, it would be the all-time high for the automotive industry, beating last year’s record-high of 467,252 units sold.

Gutierrez expects the momentum to continue into next year, with more supply expected to come in to serve the growing demand.

He said the introduction of new models also entices customers to add another vehicle to their garage.

However, the five-percent growth in sales will likely hinge on the popularity of EVs, especially as more brands and cheaper models enter the market.

“We see that consumers are already embracing and accepting electrified vehicles more than ever,” said Gutierrez.

By the end of October, the industry sold 24,265 EVs, representing a market share of 6.33 percent.

Hybrid EVs were the most popular model with 19,739 units sold so far, followed by battery EVs and plug-in hybrid EVs with 3,941 and 945 units sold, respectively.

For the coming year, Gutierrez expects the market share of EVs in the industry to reach 12 percent or even higher.