Posted in EAPP Articles

Assessing the Competitiveness of the Philippine Auto Parts Industry

Author: Rafaelita M. Aldaba
Journal of Publication: Journals
Given by: Cathlyn Gonzaga

The development of the Philippine automotive parts and components sector is
critical to the automotive assembly industry. The availability of competitive parts and
components that are locally manufactured can significantly contribute to boost the
competitiveness of the assembly sector. Given the current state of small and medium
manufacturers, making them internationally competitive and linking them with
regional production networks are major challenges.

Less competitive firms will have to contend with reduced market shares and
eventually bankruptcy. The few remaining competitive ones need to define their
strategies and the market position that they want to pursue. The government has an
important role to play in the firms’ adjustment process. While increasing economic
integration represent market opportunities; penetrating the export market is not easy
and does not come automatically. As the firms search for internal ways and exert
effort to improve their competitiveness, this must be complemented with active
government support.

Photo sources:


Photogrist Photo Magazine


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