Toyota PH expands market share despite slowdown

Although the Philippine automotive market experienced a major slowdown last year, the country’s leading automotive manufacturer Toyota Motor Philippines was able to expand its market share during the 12-month period of the disaster-torn 2020.


TMP President Atsuhiro Okamoto shared that with the 242,000 sales achievement of the whole automotive sector, they have cornered almost half of the figures.


"Even though the past year has been challenging, the market has shown incredible resilience and was able to achieve 242,000 in sales," Okamoto said.


"That being said, I am pleased to announce that TMP was able to achieve 100,019 unit sales in 2020, with an expanded share of the market at 41.3 percent," he added.


 


With that, executives of the local arm for the Japanese automaker shared their positive outlook for the year.


TMP Chairman Alfred Ty expressed firm confidence that the economy will immediately recover following the efforts from the government and industry partners that will help make the environment conducive again for businesses and the consumers.


"While the automotive industry as a whole may have seen challenging sales at the onset of the pandemic, we also saw gradual growth from the lowest point in May. We expect this increase to continue as Filipinos ease back into their daily routines and resume pursuing the life goals that had to take a backseat in 2020," Ty said.


"Every week there are new developments regarding a COVID-19 vaccine and while this may not be the be-all and end-all solution to this pandemic, it is a welcome development and a sign that progress is happening earlier than expected," he added.


Meanwhile, he also noted the private sector and government efforts are “coming into fruition.” “We commend the continuous construction of these new roads and highways which will enable economic recovery efforts and bring more joy to driving," Ty added.


Toyota dealership


Ty also said that they are welcoming the recent pronouncements by Board of Investments (BOI) regarding the possible extension of the Comprehensive Automotive Resurgence Strategy (CARS) Program in consideration of the impact of the pandemic on car manufacturing and sales.


"We thank the government for considering the extension of the CARS Program. This is very crucial for the existence of local production not only for the existing players but also in attracting additional investment in the industry. In this business of the automotive industry, where the market is still at a growing stage and lower-priced vehicles dominate new cars sold, the key to survival is volume. Economies of Scale is much needed to make investments sustainable, whether a Completely Built-Up (CBU) or Completely Knocked Down (CKD) player, or both." Ty claimed.


Toyota dealership


Meanwhile, Okamoto expressed concern on the Safeguard duties. "With the recent announcement of Safeguard duties, market recovery will be adversely affected and growth may be much more limited, as early as when provisional duties are implemented,” Okamoto explained, citing that they are both a major player for both CBU and CKD operations.


“As you know, however, TMP operates on the basis of a combination of locally-produced and imported vehicles. We will maximize efforts to promote sales of our Vios and Innova to cushion the impact of safeguard duties. We are counting on the support of Filipinos to BUY FILIPINO," he added.


Hiro Okamoto


While their lineup is mostly composed of imported CBU models, TMP remains optimistic of the potential opportunity for the locally-manufactured Vios and Innova.


"We are thankful for the government’s initiative to promote local production. However, the automotive industry is driven by volume and motivated by a wide range of choices. A mix of imported CBU models will still be needed to be able to meet the mobility needs of the country. We are confident that we will find ways to move forward as we have always done. Together with the government, we are excited to work towards realizing our vision of providing mobility for all," Okamoto claimed.


Photos from Hiro Okamoto Facebook Page, Toyota Motor Philippines


Also read:

Recommended Articles For You