One of the success stories of the 1990s, Honda Cars Philippines has had big plans and big dreams for the domestic automotive industry. Headquartered in Tokyo, it also lives by the marque’s tagline, “The Power of Dreams,” which embodies every great thing about Honda, including a once formidable team in Formula One racing—the pinnacle of motorsport.
Since its startup in October 1990, Honda Cars PH has built a nationwide network of branches, set up its own assembly plant, and installed a modern driving facility and road safety academy. It has also taken Manila-based motoring journalists to Formula One races in Kuala Lumpur and Melbourne to showcase the might and reach of its much-revered marquee.
But now, slowly and steadily, its glorious standing in the Filipino car industry has begun to fade, and rivals are eating up its market share.
Once within striking distance of the giant Toyota Motor Philippines, Honda Cars has found itself sidelined by the other Japan-based carmakers, Mitsubishi, Nissan, and, surprisingly, Suzuki.
Away from the spotlight, Honda Cars is relegated to a lamentable corner at seventh place. Definitely, it won’t find any consolation in the sales data from the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association.
A far cry
From January to April 2025, Honda Cars disposed of 5,548 vehicles, for a 3.6 percent share of the market. However, this is a far cry from the impressive performances of the market leaders.
In the same period, the car industry sold 150,654 vehicles, a modest increase of 2.54 per cent.
Toyota Motor Philippines lorded it over with sales of 71,927 vehicles and a 47.74 percent market share. Mitsubishi Motors Philippines Corp. sold 29,770 cars, a 19.76 percent market share.
Nissan Philippines sold 8,182 units, for a 5.43 percent market share. Suzuki Philippines sold 7,002 units, for a 4.65 percent market share. The US-branded Ford Group Philippines broke the Japanese stranglehold, selling 6,728 vehicles for a 4.47 percent share.
Bright note
There’s a bright note in the Honda brand, and it is in the motorcycle division where the nameplate has managed to hit the sweet spot. Honda motorcycles reign supreme in the Philippines, capturing a 55 percent commanding share of all motorcycle sales.
But Honda Cars is nowhere near the top five automakers. It’s not even a blip on the radar screen anymore. After three decades, industry pundits and car buyers are wondering what ever happened to Honda Cars despite its vivacious start?
While Honda Cars is supposed to be the marque’s “bread and butter” in the Philippines, it is now languishing in the doldrums.
It appears to have been run over by the Chinese juggernaut, with Chinese car brands swarming the domestic market in every direction.
Another plausible reason for Honda Cars’ flagging sales could be the shifting preference of buyers.
Campi president Rommel Gutierrez puts it rather cryptically: “The sales slowdown could be due to seasonal factors, economic conditions, and evolving consumer demand.”
A pundit says the “evolving demand” strikes at the core of the Philippine car industry and simply means a drastic shift to new-energy vehicles. This tectonic shift has been more pronounced than ever with the electrification of autos: bikes, golf carts, motorbikes, trikes, sedans, compacts, trucks, buses, and SUVs. Name it, and the Chinese have it.
Hybrid highball
The Campi report showed that sales of electric vehicles (EVs) reached 6,820 cars in the first four months of 2025. Of this number, hybrid cars (plug-in electric vehicles (PHEVs)) sold 5,744 units, or 4.79 percent of total car sales from January to April. (Hybrids have two power sources: a gasoline engine and a lithium-ion battery fueling an electric motor.)
Honda sales were outstripped by the PHEVs, a point that Honda Cars should have realized at the onset of the EV onslaught.
Honda Cars might draw some inspiration from its mother unit in Tokyo and instead highball to hybrids like a Honda Civic RS speeding at full throttle.
In a message that resonated worldwide, Honda Motor announced on Tuesday last week a drastic shift to focus on hybrid cars with new models. Honda Japan made the decision in the aftermath of a failed three-way merger with Mitsubishi and the ailing Nissan.
13 next-gen models
At a press conference, Honda CEO Toshihiro Mibe said investment in electric vehicles (EVs) would be reduced due to slowing demand.
Honda’s CEO said he expects to sell 2.2 million to 2.3 million hybrid vehicles by 2030 and, in four years from 2027, launch 13 next-generation hybrid models globally.
Honda will also develop a hybrid system for large models that it plans to launch in the second half of the decade.
The realignment of priorities in favor of hybrids- “clean and green cars”- might work for Honda Cars Philippines. In this case, green also means go. Then, perhaps, the “power of dreams” won’t go crashing down in smithereens.
