Toyota Motors Philippines (TMP), the largest car manufacturer in the country, is strongly supporting the call from local automotive parts manufacturers for the government to implement a local content requirement (LCR) amid a concerning decline in the domestic auto parts industry and influx of imported completely built-up (CBU) motor vehicles
“Yes, we’d like to support that,” TMP Chairman Alfred Ty told the press during the Toyota Media Thanksgiving event when asked if the company backs the Philippine Parts Makers Association’s (PPMA) proposal to impose an LCR to help revive the local auto parts manufacturing sector.
“I’m not surprised they’re asking for concession because vehicle volume is growing, but local content is a challenge,” Ty added. He noted that only two companies remain in the local car manufacturing sector—TMP and Mitsubishi Motors Philippines Corp.
However, Ty pointed out that the key question is which automotive parts can be feasibly produced locally. “What is ‘conceivable’ for us to manufacture here? There are alternative sources, such as Thailand and Indonesia,” he said.
Another major factor, he added, is competitiveness. Companies must be able to produce parts in the Philippines at a competitive level. Toyota Auto Parts Inc. (TAPI), a TMP affiliate, is currently the country’s largest automotive parts manufacturer and exporter.
At present, the locally assembled Toyota Vios has the highest local content, at 52%, as required under the government’s incentive-driven Comprehensive Automotive Resurgence Strategy (CARS) Program. Ty emphasized that a 52% local content level is already considered very high. TMP President Masando Hashimoto echoed this sentiment, noting that 52% is the highest local content rate in the industry.
Once a thriving sector with 140 member companies at its peak in 1997, the PPMA now struggles to survive, with fewer than 40 active members.
At its height, 80% of automotive parts were locally manufactured, supported by a strong network of local automotive assemblers. Today, that figure has dropped to just 20%, as the industry faces shrinking demand, global competition, and a lack of comprehensive government support.
“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.
