The Philippine automotive industry leaned heavily on sport utility vehicles (SUVs) and other light units to boost overall sales in the first half of 2025.
According to the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association, industry sales rose 2% to 230,912 units in the first six months of 2025, up from 226,279 units sold in 2024. The growth was largely driven by commercial vehicles like SUVs, pickups, multipurpose vehicles, and vans. Sales in this segment increased 11.3% compared to last year.
In June 2025 alone, industry sales reached 40,483 units, up 3.6% from a year earlier. SUVs and similar vehicles made up nearly 83% of sales, or 33,561 units. Passenger cars accounted for 17.1% with 6,922 units sold.
Although smaller passenger cars remain available and affordable, the figures indicate consumers are favoring larger vehicles.
“Manufacturers and dealers remain focused on enhancing customer experience, introducing updated vehicle lineups, and supporting market recovery across all segments — including passenger cars,” said CAMPI President Rommel R. Gutierrez.
Direction of electric vehicles (EVs)
More car buyers are turning to electric options, with global sales of fully electric and plug-in hybrid vehicles topping 17 million units in 2024.
Statista forecasts that revenue from electric vehicles could reach $784.2 billion this year. If the trend continues, the global market may rise to $990.4 billion by 2029.
In the Philippines, electrified vehicle sales reached 13,490 units, or nearly 6% of the automotive market, from January to June 2025. Hybrid cars made up most of that total with 10,891 units, while battery electrics recorded 2,439 units and plug-in hybrids accounted for 160 units.
By August 2025, the total number of new energy vehicles sold in the country had grown to 18,439 units. Hybrids again led with 14,585 units, followed by 3,278 battery electrics.
One of the main reasons for the shift to electrified vehicles is the drive to reduce harmful emissions. A report from Virta Global said EV use helped cut more than 220 million tons of greenhouse gases worldwide in 2023, up sharply from 80 million a year earlier. If adoption rates hold, the reduction could reach 2 gigatons of carbon dioxide equivalent by 2035.
The Philippines is also backing the technology through the Electric Vehicle Industry Development Act, which requires higher EV shares in public and private fleets. President Ferdinand R. Marcos, Jr. has also set a target of having 50% of vehicles on the road powered by electricity by 2040.
In response to growing electrification and demand for SUVs, major automakers are adapting by combining both trends. According to Forbes, even luxury car manufacturers known for their sedans, like Lamborghini and Bentley, have expanded lineup to cater the buying behavior of consumers.
Balancing power and efficiency with SUVs
Forbes reports that compact SUVs dominate sales because they offer maneuverability while leaving enough room for passengers and cargo. Compared with sedans, these vehicles provide a larger interior that holds luggage or everyday items without feeling crowded. Larger models may carry more, but they are often impractical for city driving.
Three-row SUVs also provide space for both passengers and belongings. Higher ground clearance builds their reputation as dependable vehicles on uneven or flooded streets. For drivers who prioritize confidence on the road, this feature remains essential.
In terms of safety, newer models include systems that improve control during emergencies. Anti-lock braking systems, disc brakes, and electronic stability controls are no longer limited to luxury vehicles but are available in many mainstream SUVs.
Compact SUVs, which account for more than 45% of the global market, often include driver-assistance technology, multiple air bags, and collision-avoidance systems. Buyers are willing to pay more for these features because they see them as investments in safety.
Still, performance remains a deciding factor. Buyers often consider torque and horsepower before making a purchase. Torque, which measures pulling force, helps SUVs handle uphill climbs, towing, and stop-and-go traffic. Horsepower, meanwhile, supports highway driving by allowing steady speeds and easier overtaking.
Some models are built to go beyond paved roads, offering four-wheel drive, reinforced suspensions, and all-terrain tires. Even if not all owners use them off-road, the capability provides reassurance that the vehicle can adapt when needed.
Buyers are also paying closer attention to handling, fuel economy, braking, and responsiveness in traffic. Such qualities are prioritized over raw power because they directly affect daily driving.
Trailblazing in hybrid compacts
Honda, for instance, has advanced in the compact SUV segment with the sixth-generation CR-V, the first hybrid version of the model available in the Philippines.
The headline addition is the CR-V 2.0 RS e:HEV E-CVT, the first hybrid CR-V offered locally. The full-hybrid system pairs a 2.0-liter Atkinson cycle gasoline engine with two electric motors. The gasoline engine delivers 148ps and 183Nm of torque, while the motors add 184ps and 335Nm of torque.
The hybrid system allows the vehicle to switch between three modes: EV Drive, which runs solely on electric power; Hybrid Drive, which combines the gasoline engine and electric motors; and Engine Drive, which uses the engine at higher speeds.
Honda reports that the e:HEV model achieves 29.4 kilometers per liter in city driving, based on United Nations Regulation 101 standards. A regenerative braking system recharges the battery, and customers receive an eight-year or 200,000-kilometer warranty on the hybrid battery.
For those who prefer traditional powertrains, Honda is offering two turbocharged gasoline variants: the 1.5 V Turbo CVT and the 1.5 VX Turbo CVT AWD. Both feature a 1.5-liter direct-injection VTEC turbo engine that produces 190ps and 240Nm of torque, making this the most powerful gas-powered CR-V to date.
Fuel economy for the turbo variants is rated at 16.4 kilometers per liter in highway conditions. The three-row seating option in these versions provides flexibility for larger families, while cargo space expands to 840 liters with seats folded.
Honda has made its SENSING suite of safety features standard across all CR-V variants. The upgraded system now uses a front camera with a 90-degree field of view, compared with 50 degrees previously, and a radar system with 120 degrees of coverage.
In testing, the CR-V earned a five-star rating from the ASEAN New Car Assessment Program, with an overall score of 87.16 out of 100.
Another first for the local CR-V is Honda CONNECT, a telematics platform that links the vehicle with a smartphone app. The system allows owners to monitor car status, schedule service reminders, and control select functions remotely, such as engine start, air-conditioning, and door locks.
Honda CONNECT also includes safety features such as Automatic Collision Detection, Security Alarm Detection, and Speed Alert. For added security, owners can access Find My Car and Geofencing alerts, along with an Emergency Call function.
Inside, the CR-V emphasizes space and refinement. The cabin features black leather seating, tri-zone automatic climate control, and an available 12-speaker Bose audio system in the RS hybrid variant.
Currently, the Honda CR-V is available in three trims: 2.0 RS e:HEV E-CVT at P2,605,000; 1.5 VX Turbo CVT AWD at P2,290,000; and 1.5 V Turbo CVT at P2,100,000. — Mhicole A. Moral
