The Philippine Parts Makers Association (PPMA), the country’s sole representative body for auto parts manufacturers, has raised concerns over the industry’s continued decline. Once thriving with 140 company members in 1997, the sector now struggles with barely 40 active members.
Previously, local manufacturers supplied 80% of the country’s automotive parts, supported by a strong network of vehicle assemblers. However, that figure has dropped to just 20%, as manufacturers face declining demand, global competition, and insufficient government support.
“The decline of our industry has serious implications, not just for the economy but also for our workforce and the future of local manufacturing,” said PPMA President Ferdi Raquelsantos. “We used to be a cornerstone of the Philippine automotive industry, but now we’re fighting for survival.”
Raquelsantos urged the government to intervene, calling for a clear roadmap, financial incentives, and policies that prioritize local content. PPMA proposed initiatives such as reviving a program similar to the Comprehensive Automotive Resurgence Strategy (CARS), offering competitive incentives to automotive assemblers, enforcing stricter local content requirements, and enhancing technology and skill development to boost global competitiveness.
The association emphasized that revitalizing the automotive parts sector is crucial for strengthening local manufacturing, generating employment, and driving economic growth.
“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.”
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