Auto part sales to post 80% growth in 2017 | | Philippine News
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Auto part sales to post 80% growth in 2017

The autoparts manufacturing industry has projected its sales to hit a record growth of 80 percent to R240 billion and employment growth of 60 percent by 2017 when the CARS Program starts taking effect.

Freddie Raquelsantos, president of Philippine  Partsmakers Manufacturers Association (PPMA), said that based on the industry’s 2013 value of output/production of R133.5 billion in 2013 this could easily increase to R240 billion next year.

Raquelsantos said the industry’s output will increase starting this year as they expect 31 companies from PPMA to forge technical licensing agreements with foreign autoparts manufacturers, which are going to supply parts to CARS participants.

In terms of jobs creation, Raquelsantos said the current industry employes of 70,000 would increase 60 percent or 112,000 by 2017.

Official data from the Philippine Statistics Authority showed the autoparts manufacturing sector in 2013 employs 55,778 while the motor vehicle assemblers employ 62,000.

Value of production of the motor vehicle assemblers was placed at R188.7 billion in 2013.

Together with the autoparts manufacturers’ R133.5 billon, the total value of output/production of industry is R321.44 B or eight percent of total manufacturing production output.

The autoparts sector also exported a record $4.3 billion in 2014 or seven percent of total exports.

The increased production of autoparts due to the CARS Program may not lead to increase exports because these would be supplied to assemblers enrolled in the program.