During the launch of the eighth-generation Lexus ES, Chairman Ty said that new car sales were dampened due to a one-two-three punch brought on by the DPWH infrastructure corruption scandal, the number of natural calamities that happened in late 2025, and the ongoing Middle East conflict between the United States and Iran.

“The Philippine economy experienced a downtrend as an off-shoot of the infrastructure irregularities and extraordinary natural disasters in the second half of the year. This slowing of economic activity carried forward to 2026,” said Ty.

“Matters took a turn for the worse, however, when the war started between the USA and Iran and a Fuel Crisis was declared. The local—and global—economy went into a tailspin. While the deceleration of GDP reflected the general decline in economic sentiment, the negative impact was more immediately felt by banks, malls, restaurants, and hotels even on the first month of the war. Fuel pump prices rose to record highs. The automotive market dropped in March then experienced an even more significant decline in April,” he continued.

And although the market is heading in the right direction with positive sales data for two straight months, Ty says it’s too soon to claim a recovery.

If anything, Ty says that the fuel crisis does have a silver lining: the shift towards electrified vehicles.

Being the first mover in the luxury electrified space that has helped Lexus navigate the current challenges somewhat. In total, Lexus has achieved almost 14,200 units in cumulative sales since operations started 17 years ago; almost half of them being electrified. Putting that into perspective, this is an average of around 835 units annually. This 2026, 93 percent of all new cars sold by the brand are electrified.

“In the Philippines, Lexus has been the most preferred luxury brand. In fact, last year, Lexus Philippines was recognized as having the highest market share in the ASEAN region,” Ty said. “It has been 15 years since Lexus Japan first introduced the technology of the hybrid engine and combining with the renowned quiet comfort and proven durability. Since then, our offering of Lexus HEV models has increased to 9 with a total of 19 variants. Aside from today’s ES, Lexus also offers two full Battery Electric Vehicles.”

Meanwhile, Lexus Philippines president Masando Hashimoto assures customers of ample supply of its vehicles despite the powerful 7.1 magnitude earthquake that struck Kumamoto.

“The Lexus ES is produced at the Lexus Miyata Plant in Fukuoka, located approximately 100 kilometers from the epicenter. While we are truly grateful that all employees and their families have been confirmed safe, their communities and daily lives have been significantly impacted,” Hashimoto said.

“Following the earthquake, operations at the Miyata Plant were suspended for seven days. After thorough inspections confirmed that both our people and production facilities were safe, I am pleased to share that as of today, August 6, production of the Lexus ES has officially resumed.”