Vehicle assemblers are not worried about the entry of United States-made cars following the agreement between the Philippine and US governments to zero the taxes on all American auto imports.

“We should look at the positive side of it. There is potential to enhance the competitiveness of local manufacturing given the advantage we have in terms of lower tariff vis-a-vis our neighboring competitors,” Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) president Rommel Gutierrez, in a Viber message.

Earlier, Board of Investments managing head Undersecretary Ceferino Rodolfo disclosed that before reaching a zero-tariff concession with the US, the Philippine government assured that no local manufacturers would be hurt or compromised, as they saw that high-end US brands were the ones flooding the Philippine market.

Furthermore, Gutierrez said that the entry of US imported cars starting 1 August will not affect the sales for the entire year, which is a sign of confidence in the improving trajectory of auto sales, as well as the Philippine market’s resilience.

On Monday, CAMPI and the Truck Manufacturers Association reported that the local auto industry recorded a 2.0 percent year-to-date (YTD) growth as of June 2025, with total industry sales reaching 230,912 units.

Key growth driver

The report said commercial vehicles were the main growth driver, rising by 11.3 percent YTD to 185,265 units, and now accounting for over 80 percent of total sales.

Meanwhile, passenger cars accounted for 19.77 percent of the market, with 45,647 units sold.

In June 2025, total monthly sales reached 40,483 units, representing a 3.6 percent year-over-year increase and 1.8 percent higher than in May 2025.

While passenger car sales reached 6,922 units, ongoing market shifts and evolving buyer preferences present opportunities for innovation and recovery in this segment.

“As the industry heads into the second half of the year, manufacturers and dealers remain focused on enhancing customer experience, introducing updated vehicle lineups, and supporting market recovery across all segments — including passenger cars,” the joint statement said.

Toyota Motor Philippines Corporation remains the dominant market player, with a 48.19 percent share, followed by Mitsubishi Motors Philippines Corporation with 19.06 percent, Nissan Philippines, Inc. with 5.14 percent, and Suzuki Philippines, Inc. with a 4.45 percent share.