Car parts manufacturers see 9% export growth this year

The Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP) expects a nine-percent growth in export earnings for this year, particularly from shipments of parts and components due to increased capacity and new products.

According to MVPMAP chairman emeritus Feliciano Torres, the auto parts industry projects dollar earnings of the automotive industry to hit $1.9 billion this year or $160 million more than the $1.74 billion earned by the sector last year.

Torres disclosed that Yazaki Torres is eyeing a 23- percent growth in export earnings this year to $220 million, from a little over $180 million last year, due to its aggressive expansion program.

Torres said that the capacity of Yazaki Torres has increased to 1.4 million man hours per month this year from 850,000 man hours a month in 2000.

Likewise, Toyota Autoparts Philippines projects a 10 percent growth in export earnings this year to $420 million from $384 million last year.

Toyota Autoparts’ export earnings last year accounted for 27 percent of the country’s total automotive exports.

The company ships transmission and constant velocity joints to Indonesia, Thailand, South Africa, Malaysia, Vietnam, India, Pakistan, Taiwan, and Japan.

The automotive parts and components sector is the third largest dollar earning industry in the Philippines after electronics and semiconductor and the garments and textile sector.

This year’s target, Torres said, is very conservative compared to the 29-percent growth registered last year when shipments of auto parts and components reached $1.74 billion.

Under a roadmap prepared by the Department of Trade and Industry (DTI) and the private sector, dollar earnings from the auto parts and components sector are expected to double to $2.75 billion in 2007 from $1.35 billion in 2003.

The country’s auto parts and components industry is very small with 256 players compared to Thailand, which has 1,700 companies, and Malaysia, with 350 auto parts producers.

Over 90 percent of the total autoparts makers are considered small- and medium-sized enterprises (SMEs).

Majority or 47 percent of the auto parts manufacturers are engaged in metal parts manufacturing, 18-percent produce plastic, leatherette, and trim.

About 15 percent make rubber components, 13 percent are in allied industries, and seven percent are into chemicals.

The parts and components manufacturing sector is comprised of companies producing various parts and components made of metals, plastic, rubber and composite materials for both the OEM and replacement markets.

The principal components manufacturers are Yazaki-Torres Manufacturing Corp. (wiring harness), United Technologies Automotive Phils. (wiring harness), Temic Automotive (Phils.) Inc. (anti-brake lock system), Honda Engine Manufacturing Phils., Inc. (engines), Asian Transmission Corp. (automotive transmissions),

Toyota Autoparts Phils. (automotive transmission), Fujitsu Ten corp. of the Phils. (car stereos) and Aichi Forging Co., Inc. (forged parts).