Toyota Motor Chairman Akio Toyoda is hoping for a deeper cooperation between Japanese carmakers in the Philippines in order to grow local parts assembly.
Speaking at the 35th Anniversary of Toyota Motor Philippines, Toyoda says that despite holding a close to 50 percent market share in the country, they cannot develop a strong local supply chain alone. With that, he hopes Japanese OEMs can work together.
“Personally, I believe that we need to come together, as an industry to develop local suppliers, here in the Philippines. Because even though we currently enjoy a 50 percent market share here, Toyota unfortunately, cannot develop a local supply chain alone, especially when you consider that roughly 75 percent of a vehicle comes from parts suppliers,” Toyoda said.
“I believe that if other Japanese OEMs worked together for the greater good, we could greatly increase opportunities in the automotive sector here. Because the more competitors we have here in the Philippines, the more local suppliers we will create and the more economies of scale we will gain which is better for us, better for the Philippines and most importantly, better for our customers. As crazy as it may sound, I wouldn’t even care if Toyota’s share of market here decreased. It simply is the right thing to do for this country. So, if any of our competitors are here today, or listening. Give me a call! It has been a privilege to grow and prosper in the Philippines,” he continued.
Toyoda thinks the proper strategy would be to focus less on exporting Completely Built Up (CBU) units, but more on automotive parts such as transmissions.
“Since 1992, Toyota Philippines has produced over 6.5 million transmissions at an export value of 2.9 billion US dollars which is equal to 200 thousand units of CBU vehicles. This strategic decision to focus on transmissions and parts exports, rather than final assembly, has worked to our advantage, I think. It is what has allowed us to be successful here, unlike some of our competitors,” he reveals.
Of course, that doesn’t mean Toyota Motor Philippines will stop local assembly of complete vehicles any time soon. Aside from continuing to assemble the Vios and Innova, Toyoda himself unveiled the next-generation Tamaraw.
Called the IMV-0 (IMV Zero) Concept internally, the Tamaraw will go back to its roots as a true commercial vehicle. It will feature interchangeable body applications from a pickup truck to a delivery van to a Modern PUV.
The Tamaraw will be assembled in Sta. Rosa, Laguna starting in late 2024. This entails an additional P 4.4 billion investment from Toyota Motor Corporation.
“When I say I’m committed to the Philippines, you can count on me to put my money where my mouth is, as they like to say in the U.S. Actually, this country reminds me of the U.S. quite a bit. Maybe it’s because you all speak better English than I do but maybe it’s because you have the same optimism and zest for life. And as we move into the next frontier in our industry. I think it’s those that stay creative and optimistic who will succeed. I truly believe there is enormous potential for growth here, from both a business and technology standpoint. In fact, I believe it’s the Philippines that could well become the Silicon Valley of Asia.”
Akio Toyoda is right; but did he talk about BEVs?
ReplyDeleteThis is very much appreciated from Toyota President. In order for us to develop the local industry and for sustainable growth, we need to lower the rate of electricity, materials, freight, streamline govt process (to avoid red tape and.corruption), provide incentives and develop disciplined and skilled workforce.
ReplyDeleteWith the man on Akio's left side at the helm, that ain't happening bro. Only way TMP will remain in production here is by their own volition.
DeleteI appreciate Toyota's effort in being committed to local manufacturing though. To continue investing in a dying sector in the country? Now that is real love for the market right there.
Who is that bald guy on Akio's right?
ReplyDeleteKudos to Toyota for that and for investing to build the Tamaraw locally in 2024.
Now with the yellow fever getting weaker year-on-year, maybe we can finally see PH progress further despite the noisy minority. And as long as our white brothers do not intervene again (i.e., sabotage) to hamper the country's growth and still make us ever dependent on them.
ReplyDeleteThe decade old Toyota Vios is still in production in the Philippines same goes for the Innova 😂😂😂
ReplyDeleteVios J,Vios XLE,Innova J and Innova E are the units they mostly produce at the plant.😂
Too bad TMPC don't export their vehicles in other countries.
MMPC exports the L300 in Indonesia which is good,
FALSE. The L300 was once exported to Indonesia, yes. However, they've stopped that when Mitsubishi Indonesia managed to re-tool their plant for the Euro 4 version. Get your facts right first before you comment. LAST WARNING.
DeleteUly, that Anonymous writing sound like how Kuchi888 writes lol (he's back)
DeleteHA! Get schooled Kuchi888!
DeleteKuchis mouth is always faster than his brain, always giving false info n sometimes outright lying here. Vanished again kuchi...never to returned here.
ReplyDelete