The Auto Body Manufacturers Association of the Philippines (ABMAP) has expressed support for the Land Transportation Office’s (LTO) enforcement against the registration of illegally imported mini vehicles and Japan domestic market (JDM) kei cars.
The industry group warned that unchecked gray market activity threatens road safety, government revenue and the country’s automotive manufacturing ecosystem.
The LTO has restricted or denied the registration of several gray market mini vehicles, particularly imported variants of the Suzuki Jimny, Hustler, Spacia, Palette, Wagon R and Stingray.
It said these units were not brought in through official distributor channels and typically enter the country via used-vehicle auction exporters as right-hand-drive (RHD) units or vehicles converted to left-hand drive (LHD).
Under Republic Act No. 8506, RHD vehicles are prohibited from operating on Philippine public roads. While some importers convert these vehicles to LHD, the LTO and safety regulators have repeatedly raised concerns about the structural integrity and crashworthiness of such modifications.
ABMAP executive-director Edgar Manuel said conversion is not simply flipping the steering wheel. He noted that if improperly done, it affects steering geometry, braking systems, crash structure and overall safety performance.
Manuel said that given these engineering realities, the LTO’s careful enforcement is justified.
The group alleged that gray market vehicles bypass many regulatory and compliance costs borne by legitimate manufacturers and distributors, including homologation, emissions compliance, safety certification and import duties.
Industry estimates show that each illegally imported vehicle can evade P300,000 to P600,000 in combined taxes and duties. Across tens of thousands of gray units circulating annually, lost government revenue may reach P3 billion to P6 billion, it said.
Manuel said these vehicles do not undergo proper homologation, emissions testing or safety certification.
He said that legitimate manufacturers invest heavily in compliance and quality assurance, and when gray imports avoid these costs, it undermines structured investment.
ABMAP also noted that many kei cars are designed for Japan’s urban conditions, particularly on narrow roads and lower speeds, and may not be suited to the Philippines’ mixed traffic environment.
The problem is compounded by rebuilt or misdeclared vehicles, some of which are imported as “used parts” and reassembled locally. These practices have been increasingly scrutinized by the LTO amid concerns over links to illegal “chop-chop” operations.
The group said enforcement actions do not limit consumer choice, noting that vehicles imported through authorized distributors and fully compliant with regulations remain eligible for registration.
The Philippines automotive sector contributes an estimated 1.5 percent to 2 percent to the gross domestic product and supports between 250,000 and 300,000 jobs across various sub-sectors.
 backs the LTO crackdown on illegally imported JDM kei cars and gray market mini vehicles over safety and tax concerns.){kind=link}