Industry News
Driven to Half a Million
PH Car Industry Gears Up for Historic Sales Milestone
MANILA — The Philippine automotive industry is on track to hit an all-time high of 500,000 car sales by the end of 2025, industry officials said at the Auto Parts & Vehicles Expo held at the World Trade Center in Pasay City.
GT Capital Auto & Mobility Holdings Chairman Vince Socco said they’re forecasting approximately 512,000 vehicle sales for the year, surpassing last year’s record of 475,000 units. “In the region, the Philippines is actually the second fastest growing market after Vietnam,” Socco noted. “It’s a very encouraging outlook.”
As of the first half of the year, the sector is already showing a 6% increase in sales, and if the pace continues, the target of half a million units is within reach. Data from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) show 190,429 units sold from January to May, up 1.7% from the same period last year.
Socco said that breaking past the 500,000 mark would put the Philippines in the same league as Malaysia, Thailand, and Indonesia in terms of car sales—a strong sign of the country’s growing motorization.
He added that the country is beginning to benefit from economies of scale. “The growing vehicle population means we need to also ramp up local manufacturing of auto components. That’s where government support will be crucial.”
The event comes amid trade talks with the United States. President Ferdinand Marcos Jr. recently agreed to open up the local auto sector to more American imports as part of a new bilateral deal. In contrast, the U.S. will begin imposing a 19% tariff on Philippine exports starting August 1.
While the trade agreement grants zero tariffs for U.S. vehicles entering the Philippines, Socco believes the immediate impact may be limited. “American brands like Chevrolet, Ford, and Jeep are already here. Most of them source their units from ASEAN countries like Thailand and Indonesia where tariffs are already zero,” he explained.
However, he added that with zero tariffs in place, U.S. carmakers may introduce more models, particularly completely built units that aren’t produced in the region—offering more choices for Filipino consumers.
Meanwhile, the government is eyeing $1.28 billion in auto parts exports by 2025, up from $1.21 billion last year, signaling confidence not just in domestic demand but also in the sector’s export potential.
Trade Secretary Ma. Cristina Roque said final negotiations with the U.S. are ongoing but stressed that the Philippines has already given what it can in the talks, particularly in excluding sensitive agricultural products such as sugar and rice from the deal.
As the second half of 2025 rolls in, industry leaders remain hopeful that no economic disruptions will stall momentum. “It’s a good time to be in the auto sector,” said Socco.
The University of the Philippines Los Baños (UPLB) has received a Mitsubishi Strada Athlete pickup from Mitsubishi Motors Philippines Corporation (MMPC) to support the DUNONG Nutri-Nurture project, part of a joint initiative tackling both learning poverty and child malnutrition in Laguna.
The donation was formalized through a Deed of Donation and Vehicle Turnover Ceremony held at the MMPC plant in Sta. Rosa, Laguna, on September 16, 2025. The event gathered officials from both institutions led by MMPC Chairman Noriaki Hirakata and President and CEO Ritsu Imaeda, along with UPLB Vice Chancellor for Student Affairs Janette Malata-Silva, who represented Chancellor Jose V. Camacho Jr.
The DUNONG Program — short for Department of Education–Laguna–University of the Philippines Los Baños Nurturing Opportunities for the Next Generation Towards Ending Learning Poverty in the Philippines — addresses two crucial issues among children: low reading comprehension and poor nutrition. Through its Nutri-Nurture component, the program combines literacy and feeding interventions to help children learn better and live healthier.
In his remarks, Hirakata underscored MMPC’s long-standing commitment to education and nation-building. “Today’s turnover is a symbol of partnership that brings together the strengths of industry and academia to support the growth of knowledge, innovation, and national progress,” he said.
President Imaeda echoed this sentiment, describing the initiative as part of Mitsubishi’s broader mission to uplift Filipino communities. “At Mitsubishi Motors, our goal goes beyond producing quality vehicles. We aim to be a trusted partner in nation-building — driving change on the road, in schools, and in the lives of Filipinos,” he added.
UPLB’s Malata-Silva expressed gratitude to MMPC for its support, calling the Strada Athlete “a vital tool” that would enable the university’s teams to reach more schools and communities. She said the collaboration demonstrates how corporate social responsibility and academic service can merge to create lasting change.
The Strada Athlete, known for its durability and versatility, will be used to deliver supplies, meals, and materials for DUNONG’s community activities. Project leaders from the Institute of Human Nutrition and Food (IHNF) said the vehicle will greatly expand the program’s reach in the province.
With this partnership, MMPC reaffirms its commitment not only to mobility but also to empowering communities through education and nutrition.
After more than three decades as Honda’s biggest dealership partner in the Philippines, the Ayala Group is stepping away from the brand’s retail operations.
In a joint statement, Ayala’s automotive arm ACMobility and Honda Cars Philippines, Inc. (HCPI) confirmed that nine dealerships under Ayala’s Iconic Dealership, Inc. (IDI) will be turned over to new principals starting January 1, 2026. These include flagship branches in Makati, Pasig, Shaw, Bacoor, Cebu, Mandaue, Iloilo, Negros, and Cagayan de Oro.
IDI will continue running the showrooms until December 31, 2025, ensuring customers with reservations and service appointments face no disruption. HCPI said the incoming dealers are equally committed to maintaining Honda’s after-sales support, warranty coverage, and customer care.
The Ayala-Honda partnership began in 1990 with the opening of Honda Cars Makati, the Japanese carmaker’s very first dealership in the country. Since then, Ayala grew into the brand’s largest dealer group nationwide, moving over 220,000 units as of August 2025.
“We thank Ayala for their invaluable contribution over the past 35 years,” said HCPI President Rie Miyake. “As we welcome new dealer principals, we remain focused on delivering excellence, innovation, and advancing Honda’s goals of electrification and carbon neutrality.”
For ACMobility, the exit reflects a shift in priorities. “This transition allows us to optimize our portfolio and focus on new growth areas,” said Jaime Alfonso Zobel de Ayala, ACMobility CEO. “We continue to invest in sustainable mobility and electrification to benefit communities, businesses, and the environment.”
The move follows Ayala’s recent withdrawal from Volkswagen and Maxus distribution. Today, ACMobility’s portfolio leans heavily on BYD, the Chinese EV leader, as well as Kia and Isuzu dealerships, EV charging infrastructure, and Bosch Car Service operations.
Honda, meanwhile, retains about 30 other dealerships not under Ayala’s management. Analysts say the realignment gives Honda a chance to refresh its local dealer network while Ayala doubles down on its electric future.
For longtime Honda fans, the shift may feel symbolic. The Ayala name has been tied to Honda since the Civic, City, and CR-V became household staples. Yet as both companies now navigate electrification, they part ways on the same road to future mobility.
Shell Pilipinas closed its 2025 Mekaniko League with a full-house finals at Le Pavillon in Pasay City on September 30, capping a nationwide search for top car and motorcycle mechanics. The program gathered more than 2,000 participants from 26 provinces across two tracks: Shell Helix Auto Mekaniko Champions for car mechanics and Shell Advance Masters for motorcycle mechanics.
From March to September, Shell held 20 regional events for motorcycle mechanics and six for car mechanics. Each stop mixed competition with training through Shell-led sessions and TESDA-certified modules that prepared participants for NC I and NC II assessments. Semi-finalists went through written exams, parts identification, and live repair tests before advancing to the Grand Finale.
Quezon City’s Mark Anthony Calimag won the national title for the Helix Auto Mekaniko Champions, with R-Jay Alvarez in second and Manny Basong in third. On the motorcycle side, Caloocan’s Charlie Sandoval took the Advance Masters crown, followed by Norman Cabal and Joefel Foronda, with Joevanne Sayat and Allen Kenneth Rañon rounding out the Top 5.
Winners received 200,000 pesos each and an all-expenses-paid MotoGP trip to Malaysia. The Top 5 car mechanics and Top 3 motorcycle mechanics also earned slots on the MotoGP trip to learn from world-level racing teams.
Shell executives said the league is as much about livelihood as it is about trophies. The company partnered with TESDA to standardize skills training and raise shop-level service quality across communities. “The Mekaniko League is one of Shell Pilipinas’ key programs that highlights the skills and dedication of Filipino mechanics,” said Jackie Famorca, Vice President and General Manager for Lubricants at Shell Pilipinas Corporation. TESDA assessor Brian Landicho added that programs like this help mechanics adapt to the fast-changing auto industry.
Launched in 2024 with a handful of runs, the Mekaniko League has grown into a national platform that recognizes shop professionals who keep vehicles roadworthy and families safe. Shell says it will continue the league while strengthening skills-building efforts through its Shell Helix and Shell Advance communities.
