By Leon De Guinto
With over 67,000 workers under its wings, the Philippines’ auto parts and supplies industry has become one of the country’s biggest employers outside of the national government.
These employees work in manufacturers of automobile, motorcycles, and parts and of direct importers, according to the 2020 data from the Asia-Pacific Economic Cooperation.
On that count alone, the auto parts business joins the ranks of large companies like the highly diversified conglomerate San Miguel Corporation which has over 70,000 in its employ.
The better news is that the rapid growth of the auto parts trade comes as the desired collateral effect of the continuously booming automotive industry in the country.
Auto sales get a rosy forecast for the year with 500,000 units, from 2023 record sales of 429,000.
Logically, the consistent growth in annual vehicle sales drives up the demand for automotive aftermarket products and services.
These facts augur well for the staging of the first Auto Parts & Vehicles Expo Philippines from June 5 to 7, 2024 at the World Trade Center Metro Manila in Pasay City.
The Philippine automotive parts sector runs through the operations of over 250 local businesses that are registered for producing and importing up to 330 types of auto parts and components, which in turn are made not just of metals but also of plastic, rubber, and other composite materials. Such enterprises supply items for original equipment manufacturers (OEMs) and independent aftermarket (IAM)–comprising the parts replacement market.
The national government, through the Department of Trade and Industry (DTI), is providing necessary support to help push the auto parts sector. In a published report (The First Philippine Industrial Park Auto Parts Industry Brochure), the agency said it aims to strengthen the sector’s position as a significant automotive player in the medium term and to make the Philippines a regional hub for vehicles and parts in Asia through a strong domestic supplier base.
DTI also points out, however, that local auto parts businesses are “facing competitiveness issues due to the absence of economies of scale and a weak supply base.” Consequently, the department recommends upgraded policies and temporary subsidies to support the sectoral operations and growth.
The agency also cites research that emphasizes the expected growth of the Asian market especially fueled by strong business activities in China, India, and the Southeast Asian countries. A spot for opportunities is the creation of the ASEAN Economic Community in 2015 and another ASEAN+1 Free Trade Agreement that bolsters trade and investment opportunities in the country and the region.
The necessary government support comes at the backdrop of the most important factor—the steady and strong growth of vehicle sales in the country. According to the Chamber of Automotive Manufacturers of the Philippines, Inc (Campi), the Philippine vehicle industry could hit a record 500,000-unit sales mark in 2024, following the record new vehicle sales of 429,807 in 2023.
The 2023 overall sales figure was a milestone for the industry as it outpaced expectations and even the record sales pre-pandemic. In 2017, the industry posted a then-record sales of 425,673 units.
Moreover, the Land Transportation Office (LTO) has released a report that indicates an estimated total of unregistered vehicles in the country of 24.7 million vehicles. This accounts for a whooping 65 percent of all motor vehicles in the country as of 2024.
Based on the latest available data, the total number of registered vehicles nationwide reached 13.9 million vehicles in 2022, a number estimated to grow by about 5 percent to 7 percent annually (excluding the equally steady growth in volume of unregistered vehicles).
Another promising spot for industry is the rising electric vehicle (EV) sector in the country. Data from the Electric Vehicle Association of the Philippines (EVAP) show that there are about 15,300 EVs running nationwide, including 354 electric motorcycles and 88 electric buses, as of end of 2023. EVAP forecasts the volume of EVs in the country to grow to about 6.6 million units by 2030.
“Inevitably, a rising number of the Philippines’ vehicle fleet is also already ageing. Though the average vehicle lifespan in the country is about 15 years or more, there is a constant need for automotive parts whether cars are newly purchased or are running for quite some time,” said Rungphech ‘Rose’ Chitanuwat, Informa Markets General Manager in the Philippines, the organizer of the upcoming Auto Parts & Vehicles Expo Philippines (APVE).
“This is the reason we are organizing the first edition of APVE in the country. It will be a new platform for local, international, and regional suppliers of automotive parts, accessories, maintenance equipment, and tools in the country,” she added. ***
It’s a (launch) date!
Isuzu Philippines marks another red-letter day on June 20 as it takes the cover off the new 2024 Isuzu D-Max, 6 PM at the Central Atrium of SM Mall Of Asia, Pasay City. This much awaited event will be followed by a three-day display and test drive at Block 20 of the SM MOA Complex.
The 2024 Isuzu D-MAX features cutting-edge off-road capabilities, enhanced safety features, and state-of-the-art technology that meet the current demands of the pick-up market. The Philippines will be the third ASEAN country to welcome the new D-MAX, and IPC is ready to invigorate the market with this exciting model.
“This new Isuzu D-MAX will be loaded with features that the market will truly enjoy. It comes from the process of listening to our clients and assessing their needs so that ultimately, we can provide to them a pick-up that is capable to bring them ‘Into New Heights’,” said IPC Assistant Sales Division Head Robert Carlos.
The D-MAX has long been celebrated for its durability, reliability, and fuel efficiency. With the latest enhancements, expectations are high for this new edition.
Isuzu is confident that the 2024 D-MAX will not only meet but exceed market expectations, reinforcing its strong presence in the pick-up segment.
