The Philippine Parts Makers Association (PPMA), the sole organization representing the country’s automotive parts manufacturing industry, is raising the alarm on the sector’s continued decline. Once a robust industry with 140 company members at its peak in 1997, the association now struggles with barely 40 active members.

In its heyday, 80% of automotive parts were locally manufactured, with a vibrant network of local automotive assemblers supporting the industry. Today, that figure has plummeted to just 20%, as the sector contends with shrinking demand, global competition, and a lack of comprehensive government support.

The health of the local automotive parts industry is a critical link in sustaining local automotive manufacturing. Vehicles that are assembled in the Philippines depend on parts manufacturers to supply components like wheels and tires, seats, seatbelts, wiring harnesses, instrument clusters, electronics equipment, batteries, and many other similar components made locally in order to meet localization requirements, bring down the cost of assembling vehicles, and inevitably make these vehicles more affordable to the end user, whether they are Filipinos, or potential foreign buyers if the vehicle is competitively priced enough for export.

“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 Ferdi Raquelsantos, President of PPMA. “We used to be a cornerstone of the Philippine automotive industry, but now we’re fighting for survival.”

Raquelsantos emphasized the need for immediate intervention, calling on the government to provide targeted support 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 added.

PPMA is urging policymakers to explore measures such as: Initiating another scheme similar to the Comprehensive Automotive Resurgence Strategy (CARS) Program, providing competitive incentives for Automotive Assemblers (OEM), far better than what Thailand, Indonesia or Vietnam is providing, imposing stricter local content requirements for vehicle assembly and supporting technology and skill upgrades to enhance global competitiveness.

The association believes that revitalizing the automotive parts manufacturing industry is vital to boosting local manufacturing, creating jobs, and contributing to the country’s 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.”

The Philippine Parts Makers Association remains committed to working closely with the government, stakeholders, and industry partners to create a sustainable future for the local automotive parts manufacturing sector.