Toyota PH unit increases capex to P700M

Toyota Motor Philippines Corp. has ramped up its capital investments this year to as much as P700 million to boost the capacity of its manufacturing plant in Sta. Rosa, Laguna, and to prepare for the government’s issuance of new strategic policies for the local automotive industry.

“We have increased our investment from P500 million to nearly P700 million,” TMP president Michinobu Sugata said in an interview with the Inquirer. “We are making these additional investments in anticipation of the implementation of the Philippine auto manufacturing industry roadmap, which Toyota believes will make the industry competitive and sustainable.”

Sugata told the Inquirer that some of the projects meant to increase the capacity of the Sta. plant have already been completed and some were nearing completion.

“We have finished installation of two additional painting robots and improved other equipment and machinery in the production line. Likewise, our intention to localize 15 more stamping parts for the Vios at the press shop of our Sta. Rosa plant will be realized in July. Additional investments have been allocated for projects like door and engine line extension and process rearrangement in our welding, painting and assembly shops,” he said.

TMP targets its production volume to reach nearly 40,000 units this year as compared to the 35,481 units produced last year. Only two Toyota models, the Vios and Innova, are being assembled at the Sta. Rosa plant.

Sugata disclosed that TMP was also raising its sales target for 2014 to nearly 100,000 units from the previous target of 90,000 units. This will mean a more than 30-percent growth in vehicle sales for TMP this year from the 75,587 units sold in 2013.

“We are reviewing our sales target but we can already see a possibility of almost 100,000 units, depending on our supply availability. Of course, we see the steady economic growth of the Philippines as the major driver,” Sugata explained.

The expected increase in sales this year was also expected to be driven by “some product changes on the existing Toyota lineup” and new products to be added to the Lexus line, which were currently not available in the country, he added.

Two new dealer shops will likewise be opened next month, a move that will further expand the customer reach of TMP. Sugata did not disclose the locations of the new dealers.

As of end-April this year, TMP has retained its market leadership with a 44.35-percent share in total vehicle sales or 30,930 units. Total vehicle sales, as provided by the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and the Truck Manufacturers Association (TMA), stood at 69,737 units in the first four months of the year, given the continued strong demand in the domestic market.