Corporate News

By Victor V. Saulon

Toyota eyeing 10% sales growth

Posted on January 15, 2016

TOYOTA MOTOR Philippines Corp. targets to increase car sales in 2016 to reach 137,000, or higher by 10% compared with the 125,027 sold last year.

“We have to ramp it up. We are optimistic about the Philippine economy. That will be the main driver,” Toyota Vice-Chairman Alfred V. Ty said Wednesday night on the sidelines of turnover ceremony of the company’s presidency at the Makati Shangri-La Hotel.

He described the fundamentals of the economy as “very strong, very much in place” and that this will drive demand for automobiles.

The automotive manufacturing company, which is a joint venture between the Ty family’s GT Capital Holdings, Inc. and Japanese companies Toyota Motor Corp. and Mitsui and Co. Ltd., welcomed a new president, Satoru Suzuki, who will replace Michinobu Sugata, who was president for six years.

During the same event, Kyoichi Tanada, Toyota’s managing officer and chief executive officer for Asia, Middle East and North Africa, said that the Philippine unit would have a sales target of 200,000 units by 2020.

Mr. Ty said: “200,000 sounds big where we are today but in the Southeast Asian region and considering the number of population we have, we believe it’s achievable,” he said.

“The CARS (Comprehensive Automotive Resurgence Strategy) program will play a big role. The support of the parts manufacturers will be very important to realize that,” he said, referring to the government scheme that offers incentives for car manufacturers that move production capacity to the Philippines.

“The requirements have been studied for so many years,” he said, adding consultations have been conducted with the Trade department, the company and industry participants.

“We believe we have a strong model to register for the CARS program -- the Vios,” he said.

To enroll a car model under the program, a company should have a planned output volume of at least 200,000 vehicles over the model life up to a maximum of six years.

“The IRR (implementing rules and regulations) just came out. We’re definitely eager to comply and register our interest right away,” he said.

Should it quality, Toyota’s targets will rely greatly on its new president Mr. Suzuki, who had a stint in the local unit from 1997 to 1999 as vice-president for vehicle sales operation.

In his speech, Mr. Suzuki said he felt a “great sense of responsibility to sustain the company’s momentum for growth.”

“Rest assured that I shall continue your legacy of excellence and relentless passion for continuous improvement,” he said, referring to departing president Mr. Sugata.

The company is currently the local top seller in passenger cars and commercial vehicles.

Toyota’s Santa Rosa industrial complex is home to its manufacturing plant and head office, as well as a number of investors performing strategic roles in the manufacture and export of automotive products. It was declared a Special Economic Zone in 1995.