Toyota To Expand Its Philippines Factory Production

Toyota to take advantage from the automotive reforms in Philippines.

Japan’s renowned automotive manufacturer, Toyota Motor Corp.’s Philippine business wishes to expand the production capacity of its local plant. The company has plans to increase the capacity by 20 percent in the coming two years so that they can start taking advantage from the incentives offered by government.

The Philippines previously came up with a mechanism that will be providing various incentives to the minute automotive industry in the region. These incentives are likely to compound to $600 million and will span for a period of 6 years. The aim of this venture is to breathe in life to the automotive sector, maximize the declining outputs and cope up with the competitors giving them a tough battle.

Toyota’s Motor’s Philippines operation is basically a joint venture done with the GT Capital Holdings Inc. the local conglomerate. Both the companies are working towards increasing the production capacity to 20 percent which is now stuck at 10 percent from the current to be 40,000 per annum reported the vice chairman of the firm, Mr. Alfred Ty.

According to Mr. Ty "We need to improve efficiency and we have to expand. Our capacity is quite stretched.” He further added that the utilization plant has a rate of more than 90 percent currently.

Toyota Motors has been successful in maintaining a dominant position to captivate the Philippine’s automotive industry. This plant in Philippines is responsible to assemble Innova and Vios models in the country’s regional capital of Manila.

According to the scheme devised by the company, an automotive firm can get benefits for a car model if that car actually has the potential to compete with the rivals. The agenda is to plan and make new investments in target production and assembly with a pumped up volume of 200,000 more than six years along with other requirements.

Toyota in Philippines would be able to take benefits through the incentive from its car Vios since the monthly production which was initially 2,000 is now expected to increase by 2,500 reported Ty. Accoprding to him, the establishment of a large assembly plant is likely to start later this year.

Considering the output, the volume that will be required under this plan only two automotive company’s fall in the criteria to benefit from the incentives. This includes Mitsubishi Motors and Toyota Motor Corp reported Raquelsantos, who is the head of motor vehicle parts of the MVPMAP industry group.

Hence, Toyota Motors is on the right track that will help them attain stability.