**Manila**: The Philippine Parts Makers Association raises alarms over the future of local automotive parts manufacturers, citing rising costs and lack of government support, urging the need for stronger policies and collaboration with industry stakeholders to support growth amid optimistic automotive sales projections for 2025.
The Philippine Parts Makers Association (PPMA) has raised significant concerns about the ongoing challenges faced by local automotive parts manufacturers in light of optimistic sales projections from leading car brands for 2025. While the automotive sector overall appears to exhibit strong growth, issues such as rising costs, dependency on imports, and limited government support threaten the viability of local parts suppliers.
Ferdi Raquelsantos, president of the PPMA, expressed grave concern over the future of Philippine auto parts manufacturing. Speaking to The Daily Tribune, he stated, “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 highlighted that despite government initiatives aimed at boosting investments in the automotive and electric vehicle (EV) sectors, local suppliers struggle to compete with cheaper, imported components.
The PPMA argues that while the local industry possesses the capability and expertise to produce high-quality parts, the absence of supportive policies forces these manufacturers to depend on foreign imports. “Our local industry has the capability and expertise to supply quality parts, but without the right policies, we are forced to rely on imports,” Raquelsantos emphasised. He calls for collaborative efforts between the government and automotive companies to ensure that local manufacturers are empowered and able to not just survive, but prosper.
To address these challenges, the PPMA is advocating for stronger policies favouring domestic industry. They suggest increased local content requirements, the introduction of tax incentives, and improved access to technological advancements as possible measures to support the growth of local automotive parts manufacturing.
In the face of an anticipated increase in vehicle demand, the PPMA continues to press for greater collaboration among all stakeholders in the automotive ecosystem, including automakers, policymakers, and investors. Raquelsantos concluded by stating that it is crucial for industry leaders to prioritise Filipino manufacturers, acknowledging their significant role in contributing to the nation’s economic development.
Source: Noah Wire Services
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