The Automotive Body Manufacturers Association of the Philippines (ABMAP) asked the government to secure additional funding for the Public Utility Vehicle (PUV) Modernization Program, following reports that the Development Bank of the Philippines (DBP) and Landbank exhausted their allocated budgets for the initiative.
The group raised the alarm over the stalled program, which is critical not only for modernizing the country’s outdated, polluting and unsafe jeepneys but also for revitalizing the local automotive industry.
“The program is a transformative initiative that addresses multiple national challenges—public safety, environmental sustainability, and economic growth. It’s disheartening to learn that funding has run out just as we are on the verge of realizing its full potential. We urge the government to act swiftly and allocate the necessary resources to keep this program on track,” said ABMAP executive director Manuel.
The program, which is expected to replace aging jeepneys with modern, Euro 4-compliant vehicles, demonstrated its potential to generate jobs and stimulate economic activity.
Based on industry estimates, the program supports over 10,000 employees in vehicle production and parts manufacturing, including its member companies that specialize in building vehicle bodies, chassis, and components.
The impact also extends to about 20,000 workers in the auto parts sector, which supplies essential components for these vehicles.
“The program will not only improve public transport, it will create opportunities for local manufacturers and workers,” Manuel said.
“Locally produced vehicles contribute 50 percent local value, meaning every modern PUV strengthens our domestic supply chain, reduces reliance on imports, and bolsters the economy. This program is vital for an automotive industry that has struggled for years,” he said.
ABMAP estimated that producing at least 100 modern jeepneys locally could generate up to P125 billion in economic activity, including investments in manufacturing, infrastructure and related services.
Modern PUVs are designed to be more fuel-efficient, drastically reducing fuel consumption and lowering operating costs for drivers and operators.
The shift not only eases the financial burden on PUV operators but also contributes to global efforts to reduce carbon emissions and combat climate change.
“This program is too important to fail. We need a collective effort to secure the necessary funding and keep the momentum going. The future of our public transport system and the local automotive industry depends on it,” Manuel said.
