The Philippine Parts Makers Association (PPMA) is sounding the alarm on the alarming decline of the country’s automotive parts manufacturing sector. Once a thriving industry with 140 company members in 1997, the association is now struggling to keep just 40 active members afloat.
At its peak, locally manufactured parts made up 80% of the automotive market, supported by strong demand and a thriving network of local car assemblers. Today, that number has dropped to just 20%, with global competition, shrinking demand, and lack of government support pushing the sector to the brink.
“The continued decline of our industry isn’t just a business issue—it’s an economic crisis in the making,” said Ferdi Raquelsantos, President of PPMA. “We were once a key player in the Philippine automotive sector. Now, we’re fighting just to survive.”
PPMA is calling on the government to act decisively in reviving the sector through:
- A new and improved version of the Comprehensive Automotive Resurgence Strategy (CARS) Program to provide globally competitive incentives for automotive assemblers (OEMs).
- Stronger local content policies to boost demand for locally made parts.
- Support for technological advancements and workforce upskilling to help the industry compete on a global scale.
“The Philippines has the talent and the resources to rebuild this industry, but we need firm government action to make it happen,” Raquelsantos emphasized. “If we fail to act now, we risk losing a vital sector that once contributed significantly to our economy and workforce.”
PPMA remains committed to working with policymakers, stakeholders, and industry leaders to restore the strength of the local automotive parts manufacturing sector. The time to act is now.
