The Philippine Parts Makers Association (PPMA) is calling for urgent government intervention to address the ongoing decline of the local automotive parts manufacturing sector. Once a thriving industry with 140 members in 1997, the sector now struggles to sustain just 40 active companies, raising concerns about its long-term viability.
Decades ago, 80% of automotive parts were locally manufactured, with a strong network of local car assemblers supporting the industry. Today, that figure has shrunk to only 20%, as manufacturers grapple with global competition, declining demand, and insufficient government policies.
“The decline of our industry has far-reaching effects—not just on businesses, but on jobs, local manufacturing, and the country’s economic future,” said Ferdi Raquelsantos, President of PPMA. “We need immediate and strategic interventions to revitalize the sector and ensure its survival.”
PPMA is urging the government to explore key measures to support the industry, including:
- A revitalized incentive program for automotive assemblers (OEMs), offering benefits that rival those in Thailand, Indonesia, and Vietnam.
- Stronger policies requiring higher local content in vehicle assembly.
- Investment in technology, innovation, and skills development to enhance global competitiveness.
“The Philippines has the potential to rebuild a world-class automotive parts industry,” Raquelsantos added. “With the right policies, we can generate jobs, stimulate economic growth, and strengthen our local manufacturing base.”
PPMA remains committed to working hand in hand with the government, industry stakeholders, and local manufacturers to develop a clear roadmap for sustainable growth.
