SANTA ROSA, Laguna—Toyota Motor Philippines has spent P3.9 billion for the full model change of the Innova, which was unveiled yesterday at its production facility here.
At the roll off ceremony yesterday, TMP president Satoru Suzuki said the amount was used for the major modifications made in the company’s production line in Santa Rosa, the construction of a new parts logistics warehouse, and the localization of additional parts.
According to Suzuki, the all-new Innova will be one of the key models that will enable TMP to be one of top 10 Toyota companies globally in terms of sales. The new Innova, which will be sold for up to P1.46 million, is seen to help cement TMP’s market leadership.
The target was to maintain a 38- to 40-percent market share over the next several years.
“It has been more than 10 years since the Innova was introduced in the Philippine market and since then, the Innova continues to be the best-selling vehicle in its class. This model has dominated the multi-purpose vehicles (MPVs) segment with 138,504 units sold as of December 2015, hitting an average market share of 34 percent,” he said.
The P3.9-billion investment is expected to enable TMP to sell about 2,000 units of the new Innova monthly. Production of the Innova is also targeted to increase by 30 percent to about 22,000 units from 17,000 units last year, said Luis Marcelino, TMP SVP for manufacturing and production control.
TMP’s Santa Rosa manufacturing plant has a capacity to produce 57,000 units, of which 22,000 units will be the all-new Innova, while the Vios will account for the rest. The plant is currently running at maximum capacity. The investment created 100 new jobs.
The local content of the Innova rose to about 50 percent in terms of net value, from the previous 40 percent, Marcelino added.
“More than building better cars, Toyota’s fundamental thrust transcends to contributing to national building through employment generation, human resource development, and advancing the country’s manufacturing capability in vehicle and parts production through technology transfer,” TMP vice chair Alfred V. Ty said on the sidelines of the roll-off ceremony.