Toyota to bring more EVs to Philippines, keeps eye on Iran war

MANILA, Philippines — Toyota Motor Philippines sees room to bring in more electric vehicles (EVs) to the Philippine market, but warned that the conflict in the Middle East could disrupt logistics and complicate rollout plans.

Toyota Motor Philippines chair Alfred Ty said EVs now account for about 20 percent of the company’s sales volume, including both Toyota and Lexus models, with hybrids making up the bulk of the mix.

But Ty warned that the Iran war could disrupt supply chains and affect the entry of additional models.

“Even before the war, there are plans for models to come in,” he told reporters on the sidelines of a forum marking the 70th anniversary of diplomatic relations between the Philippines and Japan. “As long as it doesn’t get disrupted. We haven’t seen how the war will disrupt logistics and supply.”

Ty said the Philippine unit and Toyota’s headquarters in Japan are monitoring developments in the Middle East day by day.

READ: Iran, Israel trade strikes despite Trump talk of negotiations

Outdated trade partnership

Another challenge facing the EV sector is the outdated Japan-Philippines Economic Partnership Agreement (Jpepa), which Ty said should be reviewed to reflect the industry’s shift toward smaller engines and electrified vehicles.

Jpepa took effect in December 2008, making it the Philippines’ first bilateral free trade agreement. Ty said the deal was passed when there were no small engines and no electrification.

READ: PH seeks to update trade deal with Japan

“Those are the things that we hope both governments will start sitting down to talk about,” he said.

Despite the uncertainties, Toyota’s EV sales have continued to grow.

Toyota and Lexus sold a combined 19,516 electrified units in 2025, up 38.8 percent from 14,057 in 2024.

As of February, Toyota was also the country’s top EV brand, selling 3,012 hybrid units in the first two months of the year. Other segment leaders, such as Jetour Auto Philippines Inc. (plug-in hybrids) and Tesla Motors Philippines Inc. (battery electric vehicles), sold fewer than 250 units each over the same period.

READ: Electric vehicles buck downturn in February automotive sales

Ty said Toyota remains committed to electrification, though it is not abandoning other segments.

“We’re really towards electrification,” Ty said. “But of course, you have your diesel models, especially for province access.”

Asked whether Toyota would consider further leveraging this growth by setting up EV manufacturing in the Philippines, Ty said the company would first need sufficient scale.

“It’s a question of scale,” he said. “You need the scale, the volume level, in order for manufacturing to make sense.” /dda