Even though they’re still the top brand in the automotive industry and has marginally increased their market share, Toyota Motor Philippines (TMP) still suffered a 38.32% decline in sales in 2020. However, their top executives believe it will only get better as they see signs that will lead to recovery for the industry.
“Even though the past year has been challenging, the market has shown incredible resilience and was able to achieve 242,000 in sales,” said TMP President Atsuhiro Okamoto. In that automotive pie, Toyota has the biggest cut at 41.3%.
TMP Chairman Alfred Ty notes that the recovery started after its lowest point in May, and expects this to continue in 2021 as more people ease back in their routines. He also cited that the government’s efforts toward the vaccine and the progression of the ‘Build, Build, Build’ program will help in the recovery of the economy.
CARS and Tariffs
TMP also lauds the statement of the Board of Investment regarding the extension of the Comprehensive Automotive Resurgence Strategy (CARS) Program. This is the executive order signed in 2015 that gave local car makers P4.5 billion in tax breaks over a six-year period. With it set to expire this year, news of its extension will not only help in the economic recovery of the Philippines but also attract new investments.
However, TMP is also challenged by the implementation of Safeguard tariffs that will see P70,000 added on passenger cars and P100,000 on light commercial vehicles. Toyota’s diverse lineup are mostly imported vehicles, only the Vios and Innova are locally made.
“We will maximize efforts to promote sales of our Vios and Innova to cushion the impact of safeguard duties. We are counting on the support of Filipinos to BUY FILIPINO,” said Okamoto.
More than that, Okamoto says the industry is driven by volume and a wide range of choices, admitting that imported units are needed in order to meet the demands of the market. As the leading player in both locally produced and imported cars, TMP is looking forward to working with the government in reaching a middle ground for this matter.
New Logistics Hub
TMP is also set to open their new Batangas Vehicle Logistics Hub later this year. The 32-hectare facility will take care of pre-delivery inspections and post-production installations for the brand. It can accommodate 160,000 units a year, with a stockyard that can house 4,500 cars at a time, and has an 18-truck lane covered carrier loading and unloading area to ensure safety of the personnel against all weather conditions. 6-hectares of this property would be reserved for nature.
“TMP remains committed to supporting the goal of the government to stimulate the economy and to prepare for the eventual resumption of motorization in the country” said TMP President Okamoto. “At the heart of the Batangas Vehicle Logistics Hub is our promise of making ever better cars for our customers.”
Mobility for All
Being the largest player in the automotive market, TMP feels it has the responsibility to steer the industry forward and help in the economic recovery. Beyond sales, TMP Chairman Ty emphasized Toyota Motor Corporation President Akio Toyoda’s statement that the automotive industry is the backbone of every country’s economy.
“The automotive industry provides mobility for all of us. And when we talk [about it], this does not only cover vehicle production and sales, but it includes parts, logistics, and public transportation,” said Ty. “This 2021, I hope we can continue to support each other as we brave the challenges and seize the opportunities the new year will bring.
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