Toyota Motor Philippines (TMP) has already produced 119,336 units of Vios as of May this year despite challenges during the pandemic, particularly supply chain disruption.
Vios is TMP’s enrolled model in the government’s incentive-driven Comprehensive Automotive Resurgence Strategy (CARS), which requires participants to manufacture locally 200,000 over a six-year period.
TMP First Vice-President Sherwin Chua Lim said that the local production of Vios was not spared from the global supply chain disruption due to the pandemic that caused backlog in supply on most of its models in the country.
“There are some restrictions on parts but not as bad as some selected CBU models,” said Lim citing supply chain restrictions.
For Vios, TMP’s average monthly sales stood at 2,900 units in 2021 and 2,550 units in the January-May period this year.
The local production of Vios at 119,336 units has been sufficient enough to meet local demand. As of May this year, sales of Vios already reached 117,653 units since July 2018.
But Lim hastened to add that plants are closely working with suppliers to minimize effects. Considering the reopening of the economy starting February and demand has improved due to the need for mobility, Lim said there is potential for higher sales.
On Sunday, TMP issued an advisory recognizing the continued high demand for brand new Toyota vehicles, resulting in delivery of some models/variants. TMP has blamed the supply backlog to parts supply disruption, among others, that has for some time interrupted global supply chain.
According to Lim, TMP has been experiencing an imbalance in supply and demand across all models. The volume models like the Vios, Innova, Wigo, Raize and Avanza have waiting times of at least one to two months, he said.
The Hilux, Fortuner and Hiace are backed up by a minimum of two to three months. Luxury models like the Land Cruiser and Alphard, though, may take much longer due to limited production volumes relative to demand.
Lim, however, said it would be difficult to provide an exact number on the backlog of reservations because the “market dynamics are quite fluid,” he said.
At this time, demand for motor vehicles continues to rise in line with the reopening of the economy. Pent up demand from the past two years is finding its way to the market, particularly with banks increasing their appetite for consumer lending. On one hand, he said, rising inflation and interest rates may impact on demand going forward.
Toyota continues to work very closely with its suppliers to minimize the impact of supply chain disruptions across the globe. Production plans are constantly being reviewed and updated to reflect the latest situation.
Nevertheless, the country’s largest car company remained confident to hit its 2022 sales forecast of 162,000 units.
“It is working together with Toyota Japan, Thailand and Indonesia to secure the supply of units in line with the planned sales volumes. Local production is also being maximized together with local and regional parts suppliers. So far, sales are on track and TMP is reasonably confident that it can achieve projections for 2022,” said Lim.