Auto industry booms, but Phl parts makers are left behind — PPMA

The Philippine Parts Makers Association (PPMA) is calling for greater support for local automotive parts manufacturers, warning that many are struggling despite the country’s booming car sales.

PPMA President Ferdi Raquelsantos highlighted the challenges facing domestic parts suppliers, including rising costs, heavy reliance on imports, and limited government backing.

"We welcome the positive outlook in the automotive industry, but we must ask — what about the local parts makers? Many of our members are on the brink of closure due to an uneven playing field. If we don’t act now, we may see the death of Philippine auto parts manufacturing,” Raquelsantos said.

While the government has been encouraging investment in the automotive and electric vehicle (EV) industries, local suppliers find it difficult to compete with cheaper imported components. PPMA has renewed its call for stronger policies that favor domestic manufacturers, such as increased local content requirements, tax incentives, and better access to new technologies.

"Our local industry has the capability and expertise to supply quality parts, but without the right policies, we are forced to rely on imports. The government and automotive companies must work hand in hand with local parts makers to ensure that this industry not only survives but thrives,” Raquelsantos added.

The Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and Truck Manufacturers Association (TMA) have reported sales figures of 467,252 vehicles in 2024 up by almost 9 percent from 2023.

With vehicle demand expected to surge in the coming years, PPMA is urging automakers and policymakers to prioritize Filipino manufacturers and strengthen the local supply chain. The group continues to advocate for closer collaboration among industry stakeholders to ensure sustainable growth for the country’s auto parts sector.