The Philippine automotive market experienced a rapid growth during the first quarter of 2025, showing potential for continuing and sustainable expansion throughout the year.
Source: CAMPI
According to data released by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), vehicle sales were tallied 1 at 17,074 during the quarter, posting a 6.8% increase compared to the same period of the last year.
Among the five biggest car markets in Southeast Asia, the Philippines and Vietnam were the only two countries to record positive year-on-year growth in Q1 2025. This impressive growth was supported by positive macroeconomic, which was reinforced by a noteworthy 18.7% growth in public spending and a 5.3% increase in household consumption.
Source: Marklines.com, Philkotse Research
At the same time, electric vehicles (EVs) continued to gain momentum. EVs made up 5.73% of total vehicle sales in the first quarter, with hybrid electric vehicles (HEVs) accounting for a dominant 86% of that share. Just five years ago, only 378 EVs were sold in 2020 — a number that jumped to 18,690 by 2024 and is projected to hit 20,000 in 2025.
Source: pids.gov.ph, Philkotse Research
Government support continues to play an important role in this transition. Executive Order No. 12 extended import tariff exemptions on EVs and their components through 2028. In addition, the Electric Vehicle Industry Development Act (EVIDA) provides both fiscal and non-fiscal incentives, such as exemptions from number coding schemes, priority in registration, and the issuance of special license plates for EVs owners. The government also aims to build more charging stations to make EV ownership more convenient for owners. According to the Department of Energy (DOE), there are now 912 public charging stations in the country, but the goal by 2028 is deploying 7,300 EV charging stations nationwide.
Interest in electric vehicles has mirrored this market momentum. Online search volumes for keywords such as “Tesla,” “BYD Atto,” “VF3,” and “Jetour Ice Cream EV” exceeded 330,000 in March 2025—representing a 280% increase year-on-year.
Source: Google Ads
These developments affirm that the Philippine automotive market is on a strong growth momentum in 2025. With a full-year sales target of 500,000 vehicles, industry momentum remains optimistic. The electric vehicle segment, in particular, holds significant potential and is poised to become a key driver of long-term transformation in the sector.