The Philippine Parts Makers Association (PPMA) is sounding the alarm about the country’s automotive manufacturing industry, which is struggling to keep pace with its regional neighbors' high production figures.
PPMA President Ferdinand Raquelsantos said the government must take swift action to support local manufacturers and bolster the automotive supply chain.
"Our industry is in peril. We must urgently adopt measures to revitalize our auto parts manufacturing capabilities, or we will continue to fall behind our ASEAN (Association of Southeast Asian Nations) neighbors,” said Raquelsantos in a statement.
According to a PPMA analysis, countries like Thailand, Indonesia, Malaysia, and Vietnam are achieving impressive production benchmarks, leaving the Philippines struggling to keep up.
In Thailand—a key player in the region’s automotive sector, major brands such as Toyota, Honda, Ford, Nissan, and Mitsubishi dominate local production.
In 2022, Thailand produced over 1.5 million vehicles, which PPMA attributed to the country's export-oriented approach.
During the same year, Indonesia produced nearly 1.2 million vehicles, led by key manufacturers and the further expansion of its auto industry.
PPMA said Indonesia’s auto manufacturing sector is expected to see more gains amid plans to kickstart electric vehicle (EV) production.
The group said Malaysia is also shaping up to be a regional player with its diverse industry headed by local brands Proton and Perodua.
Malaysia produces hundreds of thousands of vehicles annually, reflecting the strength of its growing domestic market.
Vietnam, meanwhile, is continually rising with local brand VinFast at the forefront. Its industry is likewise expected to focus more on EVs, capitalizing on government incentives.
PPMA said the growing production figures in these countries are in huge contrast to the Philippines’ manufacturing capabilities, which only produced over 110,000 vehicles in 2022.
“The time for action is now. Without immediate intervention to create a conducive environment for manufacturing and assembly, the Philippines risks falling further behind its ASEAN competitors,” the group stated.
“The urgency to adapt and evolve in the automotive sector cannot be overstated—more decisive measures are essential to foster a sustainable and competitive automotive industry in the Philippines,” it added.
PPMA emphasized that the Department of Trade and Industry (DTI), in particular, will play a critical role in boosting the local automotive manufacturing industry.
According to the group, the agency can help foster initiatives that not only sustain but also advance the industry.
“The automotive industry plays a significant role in generating economic activity and employment, with the potential for growth if local production can be invigorated,” it said.