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Auto sales dipped in July — report

July 2025 car sales dipped by more than 5 percent, attributed to the bad weather that pummeled Metro Manila in the latter part of the said month.
July 2025 car sales dipped by more than 5 percent, attributed to the bad weather that pummeled Metro Manila in the latter part of the said month. File
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Automotive sales in July fell by 5 percent compared to June, with industry leaders attributing the drop to the massive flooding that hit Metro Manila in the latter part of the month.

According to the joint report of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA), total auto sales in July reached 38,295 units, 5.4 percent lower than June 2025’s 40,483 units.

Commercial vehicle sales continued to dominate the market at 30,175 units, representing 78 percent of total sales.

On a year-to-date basis, the report said the automotive industry remains resilient, with sales reaching 269,207 units as of July 2025 — a 1.4 percent increase compared to the same period last year.

The industry’s growth is being driven by strong demand for commercial vehicles and signs of recovery in the passenger car segment, the group noted.

CAMPI President Atty. Rommel Gutierrez said the sustained year-to-date growth, particularly in commercial vehicles, “reflects strong market fundamentals and the agility of our members in navigating short-term challenges.”

“We are optimistic that the momentum will carry forward into the second half of the year,” he added. “With new model launches, promotional campaigns, and improving consumer sentiment on the horizon, CAMPI and TMA remain confident in the automotive sector’s sustained recovery and expansion.”

Toyota Motor Philippines Corporation remained the dominant market leader with a 48.04 percent share, followed by Mitsubishi Motors Philippines Corporation (19.0 percent), Nissan Philippines, Inc. (5.06 percent), Ford Group Philippines (4.95 percent), and Suzuki Philippines, Inc. (4.69 percent).

External disruptions

SM Investments Corporation economist Dan Roces commented: “As a bellwether for consumption, auto sales demonstrate immediate sensitivity to external disruptions, though the underlying 1.4 percent year-to-date growth trajectory suggests economic fundamentals remain sound despite weather-related headwinds.”

Meanwhile, Rizal Commercial Banking Corporation chief economist Michael Ricafort said the decline is not only due to the monsoon season but also to external risks such as US President Donald Trump’s higher tariffs and trade wars, as well as geopolitical tensions including the 12-day Israel-Iran conflict before the tentative ceasefire.

“As these external risk factors could slow down the world economy that, in turn, could indirectly slow down the local economy, this could lead to some shift in demand to cheaper or alternative transportation options that are more fuel/energy efficient, such as motorcycles and e-bikes,” Ricafort said. He noted this is also “supported by increased demand for more affordable motorcycle taxis and motorcycle-related delivery services.”

“It is also important to note that buyers of vehicles, both consumers and businesses, must have confidence in their future incomes, employment, or livelihood before making decisions on big-ticket purchases such as vehicles that mostly require taking out financing or loans and subsequently making amortization for several years,” he added.

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