PH parts makers group calls for gov’t support amid industry decline

Drive+ San Juan

MANILA: The Philippine Parts Makers Association (PPMA) expressed alarm over its industry’s serious decline.

KEY TAKEAWAYS

  • How much of the automotive parts in the Philippines are locally manufactured?

    Currently, only 20 percent of the automotive parts in the country are being manufactured locally.
  • How many members does PPMA currently have right now?

    The organization is now left with 40 active members from being a 140-firm strong group.
  • In a statement, the group that represents the country's automotive parts manufacturing sector shared that its association now only has 40 active members after once being a 140-firm strong group back in 1997.

    PPMA attributed the slide to the shrinking demand, global competition, and a lack of comprehensive government support — noting that locally manufactured automotive parts dropped to 20 percent from the previous 80.

    Geely new parts center Photo from Geely Motor Philippines

    “The decline of our industry has serious implications, not just for the economy but also for our workforce and the future of local manufacturing,” PPMA President Ferdi Raquelsantos said.

    “We used to be a cornerstone of the Philippine automotive industry, but now we’re fighting for survival,” he added.

    Raquelsantos called on the government to provide targeted aid to revive the sector. “Without a clear roadmap, financial incentives, and policies that prioritize local content, we risk losing this critical industry altogether. The Philippines has the talent, the resources, and the potential. What we need is decisive action,” Raquelsantos noted.

    next-generation Toyota Tamaraw Photo from Ruben Manahan IV

    Further, the group asked legislators to explore measures such as the following to enhance global competitiveness:

    • Initiating another scheme similar to the Comprehensive Automotive Resurgence Strategy Program
    • Providing competitive incentives for Automotive Assemblers
    • Imposing stricter local content requirements for vehicle assembly
    • Supporting technology and skill upgrades

    “We need to act now,” Raquelsantos stressed. “Let us work together to save the Philippine parts-making industry and rebuild it to once again be a pillar of nation-building and pride.”

    Also read:

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