Toyota expands production in the Philippines by 20%

Toyota Philippines1The Philippine unit of the world’s biggest automaker Toyota Motor Corp. is planning to expand its local production capacity by as much as 20 per cent in the next two years to take advantage of new government incentives.

The Philippines last week launched a scheme that will provide incentives worth $600 million over six years to its tiny auto industry in a bid to raise shrinking output and catch up with regional rivals.

Toyota Motor Philippines Corp., a joint venture with local conglomerate GT Capital Holdings Inc., is looking at increasing production capacity by 10 to 20 per cent from the current 40,000 a year, said Alfred Ty, the automaker’s vice chairman.

“We need to improve efficiency and we have to expand. Our capacity is quite stretched,” Ty said, adding that its plant utilisation rate was already more than 90 per cent.

Toyota Philippines, which has a dominant market share in the Philippine auto sector, assembles Vios and Innova models in its facility south of the capital Manila.

Under the government scheme, a car firm can get incentives for that model if the model has a track record of competitiveness, plans to make new investment in assembly and targets a production volume of at least 200,000 over six years, among other requirements.

Toyota Philippines would take advantage of the incentives through the Vios as the monthly production of 2,000 was expected to increase to 2,500, Ty said, adding that construction of a larger assembly plant could start as soon as late this year.



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The Philippine unit of the world's biggest automaker Toyota Motor Corp. is planning to expand its local production capacity by as much as 20 per cent in the next two years to take advantage of new government incentives. The Philippines last week launched a scheme that will provide incentives worth $600 million over six years to its tiny auto industry in a bid to raise shrinking output and catch up with regional rivals. Toyota Motor Philippines Corp., a joint venture with local conglomerate GT Capital Holdings Inc., is looking at increasing production capacity by 10 to 20 per cent from...

Toyota Philippines1The Philippine unit of the world’s biggest automaker Toyota Motor Corp. is planning to expand its local production capacity by as much as 20 per cent in the next two years to take advantage of new government incentives.

The Philippines last week launched a scheme that will provide incentives worth $600 million over six years to its tiny auto industry in a bid to raise shrinking output and catch up with regional rivals.

Toyota Motor Philippines Corp., a joint venture with local conglomerate GT Capital Holdings Inc., is looking at increasing production capacity by 10 to 20 per cent from the current 40,000 a year, said Alfred Ty, the automaker’s vice chairman.

“We need to improve efficiency and we have to expand. Our capacity is quite stretched,” Ty said, adding that its plant utilisation rate was already more than 90 per cent.

Toyota Philippines, which has a dominant market share in the Philippine auto sector, assembles Vios and Innova models in its facility south of the capital Manila.

Under the government scheme, a car firm can get incentives for that model if the model has a track record of competitiveness, plans to make new investment in assembly and targets a production volume of at least 200,000 over six years, among other requirements.

Toyota Philippines would take advantage of the incentives through the Vios as the monthly production of 2,000 was expected to increase to 2,500, Ty said, adding that construction of a larger assembly plant could start as soon as late this year.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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