Japan's Toyota and Mitsubishi have set up factories in the Philippines to produce gearboxes. This has made the Philippines increasingly a global gearbox production base, and the volume of its gearbox exports has increased year by year.
Before 1996, the cars sold in the Philippine market were almost local assembled vehicles. However, in recent years, the original car imported by the entire vehicle has been increasing in the market, and the proportion of assembled cars has decreased year by year. This has directly affected the production of auto parts in the Philippines. industry.
The reporter learned from the report of the Asian media "Intellasia" on July 16th that the total amount of automobile transmissions exported from the Philippines to ASEAN countries surpassed Japan for the first time. The value of gearboxes exported from the Philippines to ASEAN countries is 3.5 billion U.S. dollars, while the number of U.S. exports from Japan is only 1.1 billion U.S. dollars. Japan’s Toyota and Mitsubishi’s auto companies have set up factories in the Philippines to produce gearboxes, which has greatly boosted the transmission industry in the Philippines.
The Philippine factory also produces other automotive components such as wire harnesses, tires, automotive carpets, plastic parts, leather seats, seat belts, plastic bumpers, and more. The number of these parts is huge, but the added value is relatively low.
Industry sources said that from the perspective of product value, Philippine auto parts exported to Southeast Asian countries accounted for 25% of the total market, and the gearbox produced by the Philippines accounted for almost all market share.
The 127 member companies of the Philippine Auto Parts Association have produced 272 kinds of auto parts, but the number of original cars imported by the whole vehicle has exceeded the number of locally assembled cars, and auto parts manufacturers do not seem to be happy to see this happening. .
At present, cars assembled in the Philippines account for 39% of the total vehicle market in the Philippines. The rest are imported cars.
If we trace back the time back to 1996, we can find that about 90% of the cars on the Philippine market are made up of local Filipinos and only 10% of imported cars are imported.
Therefore, the decline in the demand for parts due to the decrease in the number of assembled cars is extremely unfavorable to local auto parts manufacturers.
In accordance with the ASEAN Free Trade Agreement, products between ASEAN countries can be freely circulated without being subject to any tariffs, so this may be a good thing for the Filipino auto parts industry.
At present, 70% of the components used by Japan's Mitsubishi Corporation's L-300 and Isuzu's Crosswind vehicles are from local Filipino companies, while the use of other models is much smaller.
Many members of the Philippine Auto Parts Manufacturers Association export auto parts to Thailand and Indonesia.
At present, about 70,000 workers are employed in the Philippine auto parts industry. However, due to the increasing demand for spare parts due to the increase in imported cars, the number of employed laborers in this industry has not increased in recent years.
The Philippine electricity price has been rising year by year, which is another disadvantage for the Philippines accessories industry.
According to industry sources, although the small auto parts manufacturers in the Philippines have been affected by the increasing number of imported cars, the Philippines has gradually become an important transmission production base as three large Japanese auto companies invest in production gearboxes in the Philippines.
Gradually, Philippine technicians will learn and absorb gearbox production technology, which will be a good starting point for large-scale production of other auto parts in the Philippines.
It is learned that industry statistics show that Japanese brands still occupy the dominant position in vehicles sold in the Philippines.
Earlier research findings released by the Asia-Pacific University of the Philippines showed that the increase in population and per capita income is expected to stimulate continued growth in Philippine vehicle sales in the coming years, and the demand for the Philippine automobile market in 2015 is expected to increase to 300,000. The Philippine Minister of Trade and Industry also stated that the per capita income of the Philippines has exceeded 2000 U.S. dollars and that the demand for the national automotive market in 2015 is “very promising†to reach 300,000 vehicles.
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