MANILA - Toyota Motors Philippines (TMP) is gearing up for increased consumer demand, planning to increase production capacity, as well as localization of additional motor-vehicle parts.
“We are now studying what and how TMP should prepare for the possible surge in market demand, together with formulating our revised annual plan,” TMP President Michinobu Sugata said in a statement.
Earlier this year, Sugata disclosed plans of investing an additional P500 million in the company’s manufacturing plant in Santa Rosa, Laguna, to increase its production capacity.
TMP will also proceed with its plans to localize 15 additional press parts for the Toyota Vios as part of that additional investment, Sugata was quoted in the statement as saying.
The BusinessMirror earlier reported that the company bared plans to increase the locally sourced components of the Vios to 40 percent of the car, or more than 300 parts, from the current 20 percent.
The company’s plans came after executives of some local Toyota suppliers said they are also eyeing expanding their respective capacity.
Four Toyota suppliers confirmed expansion plans for 2014, in anticipation of the Philippine Automotive Manufacturing Industry Roadmap crafted by the Department of Trade and Industry.
Tokai Rika Philippines, Toyota Boshoku Philippines, Technol Eight Philippines, and Philippine Auto Componentes were identified as the firms set to undertake expansion plans.
During the 2014 Toyota Supplier Conference and the 14th Toyota Suppliers Club Assembly, Sugata lauded suppliers as he said that first quarter “robust” sales performance was an indication that motorization in the Philippines is becoming more evident.
However, Sugata said that while it is important for parts makers and manufacturers to improve competitiveness through individual efforts, “the industry definitely needs support from the government to ensure sustainable growth.”
The release of the road map has been deferred several times, with the latest self-imposed deadline scheduled for the first quarter of 2014.
Local automotive industry players have been urging the government to release the much-awaited industry road map, saying the road map is crucial for future investments in the country.
Read more on BusinessMirror.