MANILA, Philippines - The Philippine Parts Maker Association (PPMA) is pinning its hopes on the government’s Comprehensive Auto Resurgence Strategy (CARS) program in the face of dwindling automobile production.
In a statement, PPMA said despite a substantial increase in the industry vehicle sales at 269,000 units last year, only 32 percent of these were locally assembled.
According to the PPMA, last year’s outcome was a far cry from the highest recorded industry sales with locally assembled completely knock down (CKD) vehicles in 1996 when there were 162,000 units sold, 85 percent of which were locally assembled.
PPMA president Ferdinand Raquel Santos said the CARS program would be able to remedy the disparity by encouraging participating carmakers to increase the local base value chain or sourcing of parts.
Raquel Santos said the six-year program is allocated for only three enrolled models, with an annual average production of 34,000 units each.
“This strategy will practically increase the local CKD assembly by 130 percent and will not only boost the market for local parts makers but will also accelerate the sound development of the Philippine motor vehicle industry,” Raquel Santos said.
In line with the CARS program, the PPMA said it would strive to increase its volume and attain the economy of scale to be of equal footing with competitors in the international arena.
PPMA it is also devising progressive strategies to increase its competitiveness.
“PPMA lauds the CARS program and assures that the government’s effort in supporting the Philippine automotive industry will not be futile,” Raquel Santos said.
“PPMA is in full cooperation and participation with the government’s program to support local industry. Hand in hand, PPMA and the government can establish a foundation for the future development of the economy,” he added.