Overview
- AFAC’s latest sector report shows employment fell from 53,700 in 2024 to 49,600 in 2025, a loss of about 4,100 jobs or 7.7%.
- About 80.5% of the job losses came from suppliers tied to domestic vehicle assembly after model cancellations and shifts in production plans in 2025.
- Rising imports from Asia cut demand for locally made parts and also undercut the replacement-parts market, which accounts for 34.1% of the sector’s jobs.
- Nearly half of workers are in firms with fewer than 300 employees, and 21% are in companies with fewer than 100, which makes the workforce more vulnerable to demand shocks.
- AFAC expects vehicle production to drop another 7.5% in 2026 with import growth continuing, and it warns that reversing job losses soon will be difficult.