Automotive leader Toyota Motor Philippines (TMP) has urged Filipinos to patronize locally produced vehicles as it supports government efforts to promote local car production even turning bullish with 30 percent recovery growth on sales and the operation of its P4.5-billion new logistics hub in Batangas in the last quarter this year.
“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 TMP President Atsuhiro Okamoto during a press event. Vios is TMP’s enrolled model in the government’s Comprehensive Automotive Resurgence Strategy program.
The TMP leader also expressed appreciation to the Department of Trade and Industry’s (DTI) decision to impose the safeguard measure, saying “We are thankful for the government’s initiative to promote local production.” DTI hopes the safeguard measure will curb the influx of completely built up (CBU) motor vehicles will lead to more local production and create more jobs for Filipinos.
Okamoto, however, also equally emphasized that the decision of the DTI to impose safeguard duties (P70,000 per unit of imported CBU passenger cars and P110,000 per unit of imported CBU light commercial vehicles) will adversely affect market recovery and limit growth potential.
This because the industry operates on the basis of a combination of locally-produced and imported vehicles as the automotive industry is driven by volume and motivated by a wide range of choices.
“A mix of imported CBU models will still be needed to be able to meet the mobility needs of the country,” he explained.
Nonetheless, he expressed confidence, “We will find ways to move forward as we have always done. Together with the government, we are excited to work towards realizing our vision of providing mobility for all."
Based on favorable market factors, Okamoto said the auto industry is forecasted to recover to 320,000 units this year from 242,000 units last year.
For TMP, the industry leader forecasts sales of 130,000 units or 29.97 percent higher than the 100,019 units sold in 2020. TMP also expanded its market share at 41 percent during the pandemic year.
Despite the challenging situation, Okamoto said TMP will continue to enhance value chain services, and be more innovative ways to make mobility for all a reality.
For his part, TMP Chairman Alfred Ty shared this optimism, citing efforts from the government and industry partners all contributing to improvements in market conditions and overall environment for both businesses and the consumers.
"While the automotive industry as a whole may have seen challenging sales at the onset of the pandemic, we also saw gradual growth from the lowest point in May. We expect this increase to continue as Filipinos ease back into their daily routines and resume pursuing the life goals that had to take a backseat in 2020," said Ty.
Ty believes the economy is improving, and that businesses will recover in due time.
"Every week there are new developments regarding a COVID-19 vaccine and while this may not be the be-all and end-all solution to this pandemic, it is a welcome development and a sign that progress is happening earlier than expected," said Ty.
Vehicle Logistics Hub
Meantime, TMP also announced it will start operations of its P4.5-billion Batangas Vehicle Logistics Hub in the fourth quarter this year for efficient shipment to customers. This is in light of government announcements to impose safeguard duties on imported vehicles.
The 32-hectare facility, located near Batangas Port, will house a Pre-delivery Inspection and Post Production Installation facility with a capacity 160,000 units per year, and a stockyard that can accommodate a at least 4,500 cars at a time.
Similar to its Santa Rosa Vehicle Logistics Center, the new facility will have an 18-truck lane covered car carrier loading and unloading area. This will ensure the safety and health of its team members, enabling them to operate in any weather condition. And as a strong advocate of the environment, Toyota will keep 6 hectares of this property as its green area.
“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. The auto industry is a key driver of economic activity and an essential part of the drive to increase mobility. At the heart of the Batangas Vehicle Logistics Hub is our promise of making ever better cars for our customers. Preserving the quality of our vehicles, from production in various plants all over the world, to delivery dealers and customers, efficient logistics is necessary” said Okamoto.