Toyota Motor Philippines (TMP), the country’s leading automotive company, has surpassed in October 2021 the 100,000-unit sales level for its Vios model enrolled in the Comprehensive Automotive Resurgence Strategy (CARS) program, making the company eligible for the Production Volume Incentive (PVI) under the program.
This formed part of a disclosure submitted by its parent company GT Capital Holdings Inc. to the Philippine Stock Exchange on Tuesday, March 29, on the conglomerates’ consolidated income for 2021.
Under the CARS program, the PVI represents the production volume for parts and vehicles. The program, which is administered by the Board of Investments, mandates a participant to produce a minimum production goal of 200,000 units for a maximum of six years or the life span of the particular car model.
The fiscal support will come in the form of tax payment certificates. Program participants can use the certificates in offsetting their tax and duty obligations to the government, specifically excise tax, income tax, import duties and value-added tax.
The program is limited to three vehicle models, with each model to get a total fiscal support of P9 billion. The P9-billion support includes all the incentives that will be availed of by the parts makers, shared services providers and the vehicle assembler.
TMP, one of two CARS program participant, the other being Mitsubishi Motors Philippines, is producing Vios at its Sta. Rosa, Laguna manufacturing complex.
Based on the PSE disclosure, TMP booked consolidated revenues of P131.3 billion in 2021, from P99.8 billion in 2020, representing a 32 percent growth. TMP’s consolidated net income reached P6.2 billion during the period, from P3.4 billion in 2020, registering a hefty 82 percent growth.
Toyota outpaced the market with vehicle retail sales of 129,667 units in 2021 from 100,019 units in 2020, a 30 percent increase.
TMP continued to expand its model lineup by launching four all-new GR Sport variants, the Innova in February, and the Camry Hybrid EV in December. TMP achieved its 20th consecutive Triple Crown with an all-time high market share of 46.3% in full-year 2021, reaffirming its dominance in the passenger car, commercial vehicle, and overall market segments.
In November, JBA Philippines, Inc. (JBA-P) commenced operations, a joint venture between Japan Bike Auction Co. Ltd. (JBA) and GT Mobility Ventures that in turn is a joint venture between GT Capital Auto and Mobility Holdings, Inc. (GTCAM) and Mitsui & Co., Ltd. (Japan). The company offers a transparent online bidding platform for pre-owned vehicles, which extends the value chain GT Capital’s automotive business. Likewise, Premium Warranty Services Philippines, Inc (PWSPI) commenced sales of used car inspection and warranty services in September. PWSPI is a joint venture with Premium Group, the largest warranty provider in Japan. It focuses on enhancing the buying and owning experience of pre-owned cars.
“As the Philippine economy rebounded in 2021, so did the automotive sector. TMP delivered strong results last year, significantly outpacing the growth momentum of the industry. We are very encouraged about our continuing strong market penetration despite four months of mobility restrictions in 2021 and the accompanying global supply chain disruptions. TMP’s 46.3 percent market share is the highest in the ASEAN and third highest globally. As the economy and auto market resurges, TMP remains reasonably optimistic. In fact, in March this year, TMP achieved a remarkable milestone of selling over two million units in the country since it started operations over three decades ago,” GTCAM Chairman Vince S. Socco said.
TMP also continues to finance auto loans through our in-house auto financing arm Toyota Financial Services Philippines Corporation.
Socco further said that TMP is pivoting towards new mobility initiatives and are expanding its Toyota and Lexus hybrid model lineup to reach pre-COVID sales levels by this year.
Aside from the automotive industry, the GT Capital conglomerate has interests in market-leading businesses across banking, importation, dealership, and financing, property development, life and general insurance, and infrastructure. Its component companies comprise of Metropolitan Bank & Trust Company (Metrobank), Toyota Motor Philippines Corporation (TMP), Toyota Manila Bay Corporation (TMBC), Toyota Financial Services Philippines Corporation (TFSPH), Sumisho Motor Finance Corporation (Sumisho), GT Capital Auto and Mobility Holdings, Inc. (GTCAM), JBA Philippines, Inc. (JBA-P), Premium Warranty Services Philippines, Inc. (Premium Warranty), Federal Land, Inc. (Federal Land), Philippine AXA Life Insurance Corporation (AXA Philippines), and Metro Pacific Investments Corporation (MPIC).