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Automotive & Auto Parts

The Philippine automotive manufacturing industry covers the assembly, importation/distribution, rebuilding of motor vehicles, and the manufacturing of automotive parts and components. It consists of highly diverse sectors such as metal, electrical, plastic, rubber, and composite materials. It is also characterized by heterogeneous firms with a few large, foreign-owned and modern firms (Toyota, Mitsubishi, Honda, Nissan and Isuzu) operating side by side with many small underdeveloped firms.

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11th highest in passenger cars sold

Across the Asia Pacific Region, the Philippines ranked 11th among the countries with the highest passenger cars sold.

Source: Statista

Comprises 11% of the country’s GDP

Motor vehicle sales and repairs contribute to 11% in the gross domestic product (GDP).

Source: Manila Bulletin

340,000 skilled industry workers

An estimated 340,000 Filipinos are employed in the motor vehicle industry.

Source: DTI & BOI

The industry supports a complex supply chain and with it a significant number of good-paying jobs. It represents one of the bigger sources of trade in durable goods in the country, and accounts for a considerable amount of commerce for the financial sector. [98]

The Philippine automotive manufacturing industry covers the assembly, importation/distribution, rebuilding of motor vehicles, and the manufacturing of automotive parts and components. It consists of highly diverse sectors such as metal, electrical, plastic, rubber, and composite materials. It is also characterized by heterogeneous firms with a few large, foreign-owned and modern firms (Toyota, Mitsubishi, Honda, Nissan and Isuzu) operating side by side with many small underdeveloped firms. [99]

The motor vehicle assembly sector is grouped based on the type of motor vehicles, such as passenger cars, commercial vehicles (utility vehicles, pick-ups, vans, trucks, buses, special purpose vehicles) and motorcycles. [100] There are five passenger car assemblers and 22 commercial vehicle assemblers in the country with a combined capacity of 150,000 units per year. [101]

The Philippine domestic auto parts industry is composed of 256 companies producing around 330 different parts and components made of metals, plastic, rubber and composite materials for both the original equipment manufacturer (OEM) and replacement market. Almost 40% of all parts manufacturers produce OEM parts while the remaining 60% caters the aftermarket. [100]

Opportunities and

  • Data from the joint report of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA) showed that total car sales reached 268,488 units in 2021, a 20-percent increase in sales.[102] Commercial vehicles (which include SUVs, MPVs, pick-ups, trucks, and buses) accounted for 67 percent of the market. The remaining 33 percent was held by passenger cars. [103]

  • There is a stable growth in vehicle production with 5.2% average annual growth rate. There is also a steady growth of sales and production of motorcycles in the country, with average growth rate of 18% and 34% for sales and production respectively. [104]

  • Auto parts & components are among the Philippines’ top export merchandise with major export destinations like Japan, US, Thailand, Canada and China. [104]

  • The present workforce is recognized to be highly skilled and trainable. The manufacturers themselves have contributed to the growth of the industry through the continuing education and training of its workers in vocational schools with the assistance of agencies like the Technical Education and Skills Development Authority (TESDA) and foreign funded technical assistance programs. [104]

  • Well-structured and with its network of production facilities, the automotive industry is one of the key drivers of the Philippine economy. Allied supporting industries encourage strong backward linkages such as capital-intensive production and testing equipment, machinery and equipment, dies and moulds, metal stamping, die casting and machining. Moreover, forward linkages in the forms of dealerships make a seamless flow of goods and services in the industry by performing the main marketing and sales functions, car financing and insurance, and after sales service. [99]

  • The Philippines has comparative advantage in a number of products like ignition/other wiring sets for vehicles; radio receivers, external power; lead-acid electric accumulators; brake system parts; transmissions for motor vehicles; pneumatic tyres for motor cars and other parts and components. [99]

  • With the presence of global automotive brands, together with the abundant supply of highly skilled and technical manpower, the quality of final goods and services produced by the automotive industry is at par with regional and global standards. As a result, the country is currently enjoying stable automotive parts and components exports and is a favorable destination for future investments. [99]

  • The industry’s current development plans call for the simultaneous and coordinated growth of both the vehicle assemblers and the parts manufacturers, in recognition of the interdependence and strong multiplier effects of these subsectors. The strategy entails a cost-competitive solution, where the increase in assembly volumes can yield economies of scale and more affordable pricing along the entire supply chain, from resource-based raw materials to the car in the showroom. Such a scenario will generate ample and quality employment opportunities, from the major brands all the way to small and medium scale enterprises. [99]

  • Amidst these challenges, there are market opportunities that globalization brings and which the industry can take advantage of. Forecasts show that Asia will be the most dynamic market in the world, especially with the steady growth of China, India, and the Southeast Asian countries. The creation of the ASEAN Economic Community (AEC) in 2015 along with other ASEAN+1 Free Trade Agreements (FTAs) offer increased trade and investment opportunities, as well as cooperative arrangements through joint ventures or mergers. There are also strong growth potentials in specializing in certain core processes and alternative fuel and electric vehicles and parts given growing environmental and safety concerns. [99]

New Product Opportunities

Electrical lighting equipment used for motor vehicles

HS Code
8512 HS4

Parts of motor vehicles

HS Code
8708 HS4

Featured Companies

  • Yazaki-Torres Manufacturing Incorporated is the largest wiring harness manufacturer in the Philippines and top exporter of automotive parts. Established in 1974, Yazaki-Torres is a joint venture of the Yazaki group of Japan and the Torres family of the Philippines. The Yazaki-Torres group operates four production facilities in Lipa City, Batangas and Calamba City, Laguna, with three plants in Calamba City, Laguna designated as a special economic zone by the Philippine Economic Zone Authority. The company produces 3,700 products (representing the different kinds/variants of wiring harnesses, meters, power distribution and control systems, connectors, sensors, and other automotive products) and exports 97% of its production to overseas markets, primarily the United States, with customers such as Ford, Toyota, Chrysler, Mitsubishi, Fuso, and Nissan [105]

  • Yamaha Motor Philippines Inc. Yamaha Motor Philippines Inc. (YMPH) has long been considered as one of the strong contending brands in the motorcycle industry. The Japanese brand is known to produce several products in the field of mobility including recreational vehicles, boats, marine engines, snowmobiles, small tractors, and of course motorcycles. It started in 1955 when its motorcycle division was founded and headed by Genichi Kawakami. Yamaha’s initial product was a 125cc, two-cycle, single-cylinder motorcycle, known as the YA-1 which happens to be a copy of the German DKW RT 125. Notably, the YA-1 garnered quite a success in the field of racing. The brand first entered the Philippines in 1962. YMPH has become one of more than 20 worldwide subsidiaries operating on all continents. Establishing local operations in Batangas and as the official distributor of Yamaha motorcycles. It is also currently on hold of several dealerships located in Luzon, Visayas, and Mindanao. Locally, it continues to venture success in the market by offering a wide range of motorcycles with a sense of innovation, providing consumers with exceptional value and a deep feeling of satisfaction. [106][107]

  • Toyota Motor Philippines Corporation Toyota Motor Philippines Corporation (TMP) is the largest automotive company in the country, with the widest vehicle line-up of 20 Toyota models. It has over 70 dealers nationwide, including Lexus Manila, Inc., for its sales distribution and service centers. TMP was incorporated on August 3, 1988 as a joint venture of GT Capital Holdings, Inc., Toyota Motor Corporation, and Mitsui & Co., Ltd. TMP's head office and manufacturing plant are located inside the 82-hectare Toyota Special Economic Zone (TSEZ) in Santa Rosa City, Laguna. The Marketing Office of TMP is located at the 28th and 31st floors, GT Tower International, Makati City, while its Batangas Vehicle Center is in Batangas City. TMP currently produces the best-selling Innova and Vios. Its existing manufacturing plant has the capacity to produce over 55,000 units per year (as of end-December 2020) on two-shift production operations. The company’s regular and outsourced manpower is composed of more than 3,000 employees. [108]

  • Hino Motors Philippines Corporation Established in March 1975, Hino Motors Philippines Corporation (HMP), formerly Pilipinas Hino, Inc., is a joint-venture among Filipino investors, Hino Motors, Ltd. and Marubeni Corp. of Japan. A participant in the Commercial Vehicle Development Program (CVDP), HMP is engaged in the assembly and distribution of quality HINO trucks, buses and spare parts. Aside from manufacturing vehicles and bodies, HMP also distributes genuine Hino parts and accessories and provides long-term maintenance services to its clients. It is also the only company which offers customization thus becoming a “one-stop shop” – from chassis assembly to building the body based on the desired specification of the client and further to vehicle maintenance, repair and refurbishing. Hino Motors Philippines Corporation is the first bus body manufacturer in the country to receive ISO 9001:2000 Certification, a distinction that serves as a proof of unmatched product quality. The company currently has over 20 Dealers in several locations around Metro Manila, as well as in most key provincial cities. [109]


[98] The Manila Times. (2022, February 24). PH auto industry facing uncertain prospects in 2022


[99] Industry Gov Ph, Federation of Automotive Industries of the Philippines, & Board of Investments. (n.d.). Securing The Future of Philippine Industries: Automotive. Industry Gov Ph.


[100] Board of Investments. (2017). The Philippine Motor Vehicle Industry. BOI Gov Ph.


[101] International Trade Administration U.S. Department of Commerce. (n.d.). Philippines Automotive Market. International Trade Administration | Trade.Gov. Retrieved April 9, 2020


[102] Ochave, R. (2022, January 12). Vehicle sales up 20% but 2021 target missed. BusinessWorld Online.


[103] Statista. (n.d.). Volume of vehicles sold in the Philippines 2021, by type.


[104] Asia-Pacific Economic Cooperation. (2020, August). Philippine Automotive Market Situation.


[105] Industry Gov Ph. (2015, March 18). Yazaki-Torres Manufacturing Incorporated.


[106] Motodeal. (n.d.). Yamaha Motorcycles, Philippine Prices, Specs & Reviews.


[107] Yamaha Global. (n.d.). Yamaha Motor Philippines Inc. Official Website. Yamaha.


[108] Toyota. (n.d.). Who We Are | Toyota Motor Philippines.


[109] Hino Motors. (2018, May 22). History of Hino.