JAPANESE automaker Toyota has expressed concern that the proposed reciprocal tariffs by the United States could dampen exports of its automotive suppliers in the Philippines.
“Some exporters feel the strain from the evolving global trade environment. Some suppliers noted that the proposed reciprocal tariffs by the United States could dampen export demand and complicate long-term planning,” Toyota Motor Philippines Corp. (TMP) said in a statement.
TMP President Masando Hashimoto reported last month that Toyota group export suppliers contributed $1.2 billion in export revenues in 2024, maintaining their 30-percent share of Philippine exports of original engineering manufacturing (OEM) parts and components.
Hashimoto said industry sales in 2024 increased by 8 percent, with a total of 474,000 vehicles sold domestically.
Of that, TMP captured a 46-percent market share with 218,000 units sold, he said during the 26th Toyota Special Economic Zone (TSEZ) Update meeting with the Philippine Economic Zone Authority (PEZA) last month.
Hashimoto also highlighted a production milestone in 2024 with the launch of TMP’s third completely knocked down (CKD) model of Toyota’s Next Generation Tamaraw.
TMP said it planned to apply the Tamaraw model for entry into the Revitalizing Automotive Industry for Competitiveness Enhancement (RACE) Program.
However, the company said it is still waiting for a joint administrative order from the Department of Trade and Industry, Department of Finance and the Department of Budget and Management that will outline the rules and guidelines for participation in the RACE program.
The RACE Program is a government initiative designed to boost the local automotive manufacturing sector by offering incentives for the local production of vehicles and fixed investment support.
Participating carmakers must commit to locally manufacture 100,000 units of their chosen vehicle model.
TMP added that the Toyota Supplier Network welcomed and anticipated the RACE program, viewing it as a critical catalyst in parts localization and broader industry growth to sustain the previous capability gains from the Comprehensive Automotive Resurgence Strategy Program.
Meanwhile, TMP reported that its local production of the Tamaraw helped in boosting the local supply chain by engaging 44 Tier 1 suppliers and integrating 14 Tier 2 suppliers.
TMP shared that its investment had amounted to P5.5 billion while the Toyota Supplier Network also shared its plan to inject a P500-million investment for plant capacity expansion, anticipating the success of such light commercial vehicle models in the domestic market.
Shares of TMP parent GT Capital Holdings Inc. dropped by P15.50, or 2.3 percent, to close P659.50 each on Friday.
Be the first to comment