As Southeast Asia sees substantial growth in its automotive manufacturing capabilities, countries like Thailand, Indonesia, Malaysia, and Vietnam are setting impressive production benchmarks. This rapid advancement raises concerns regarding the Philippines, which is striving to keep pace with its regional neighbors in local vehicle manufacturing, particularly amid recent encouraging production figures.
In Thailand, a key player in the automotive sector, major brands such as Toyota, Honda, Ford, Nissan, and Mitsubishi dominate local production. Popular models include the Toyota Hilux, Toyota Vios, Honda Civic, and Mitsubishi Triton. In 2022, Thailand produced over 1.5 million vehicles, affirming its reputation as the “Detroit of Asia,” with a robust export-oriented automotive industry.
Indonesia is accelerating its automotive production, led by key manufacturers like Toyota, Daihatsu, Honda, and Mitsubishi. Models like the Toyota Avanza, Kijang Innova, Daihatsu Sigra, and Mitsubishi Xpander are notably produced in the country. Indonesia’s production figures approached 1.2 million vehicles in 2022, indicating a strong commitment to expanding its automotive market, including plans for electric vehicle (EV) production.
Malaysia showcases a diverse automotive landscape with local brands Proton and Perodua, alongside international manufacturers. Models produced include the Proton Saga, Perodua Myvi, Honda HR-V, and Toyota Fortuner. Malaysia’s automotive industry produces hundreds of thousands of vehicles annually, signaling a well-established domestic market.
Vietnam has started to rise as a regional player, with local brand VinFast at the forefront of automotive innovation, producing models such as the VinFast Fadil, Lux A2.0, and Lux SA2.0. Vietnam is also increasingly focusing on EVs, capitalizing on government incentives to bolster its automotive sector.
In striking contrast, the Philippines, although improving, faces challenges in its automotive manufacturing capabilities. In 2022, the country produced approximately 110,350 vehicles, which included notable models like the Toyota Vios and Mitsubishi Mirage. Despite this number, the Philippines still grapples with a lack of extensive local assembly plants and a diminishing auto parts sector.
As noted by Ferdi Raquelsantos, president of the Philippine Parts Makers Association, “Our industry is in peril. We must urgently adopt measures to revitalize our auto parts manufacturing capabilities, or we will continue to fall behind our Asean (Association of Southeast Asian Nations) neighbors.” The Philippine government must take immediate steps to support local manufacturers and strengthen the automotive supply chain.
The Department of Trade and Industry (DTI) has a critical role in this scenario; fostering initiatives that can not only sustain but also enhance the automotive parts manufacturing sector is imperative. The automotive industry plays a significant role in generating economic activity and employment, with the potential for growth if local production can be invigorated.
The time for action is now. Without immediate intervention to create a conducive environment for manufacturing and assembly, the Philippines risks falling further behind its Asean competitors. The urgency to adapt and evolve in the automotive sector cannot be overstated—more decisive measures are essential to foster a sustainable and competitive automotive industry in the Philippines. (Article and images courtesy of the Philippine Parts Makers Association)