Toyota Motor Philippines Seeks State Support as Export Outlook Softens
Key Takeaways
- •Toyota Motor Philippines expects export sales to reach $1.06 billion this year, slightly below the $1.09 billion recorded in 2025, amid global trade uncertainties and softer demand.
- •The company renewed its call for stronger government support measures to sustain local vehicle manufacturing and exports at its Sta. Rosa, Laguna economic zone.
- •TMP's 13 export suppliers have generated more than P34 billion in cumulative investments and created over 45,000 direct jobs, with five additional companies in the zone employing more than 7,000 workers.
- •The automaker is ready to participate in the P9-billion RACE incentive program, but its implementing rules have yet to be issued, while the government still owes P5.16 billion to participants of the earlier CARS program, including TMP.
- •Despite an 8.1% decline in sales, TMP remained the Philippines' top-selling automotive brand as of the end of September.
Toyota Motor Philippines Corp. (TMP) expects export sales to reach $1.06 billion this year, slightly below the $1.09 billion recorded in 2025, as global trade uncertainties and softer demand weigh on the automotive industry. The modest pullback frames the company's renewed push for policy support, which it links directly to keeping local production and exports viable.
"Amid softer demand and global trade uncertainties, the group continues its manufacturing and export operations in the Philippines, while seeking measures that enhance the competitiveness of local manufacturers and suppliers," the company said in a statement on Thursday.
In that context, TMP renewed its call for stronger government support for local vehicle manufacturing, saying such measures would help sustain production and exports.
The automaker assembles the Vios, Innova, and Tamaraw at its 82-hectare Toyota Special Economic Zone in Sta. Rosa, Laguna. Citing Philippine Economic Zone Authority Director-General Tereso O. Panga, TMP said its 13 export suppliers have generated more than P34 billion in cumulative investments and created over 45,000 direct jobs. The zone also hosts five companies that employ more than 7,000 workers — a supply base whose competitiveness the requested measures are meant to bolster.
TMP added that Philippine suppliers have opportunities to expand their participation in the automotive value chain.
The company reiterated its readiness to join the government's Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, which offers a P9-billion fiscal incentive package supporting local production of internal combustion engine vehicles. The program's implementing rules have yet to be issued.
TMP also urged the government to fulfill its commitments under the Comprehensive Automotive Resurgence Strategy (CARS) program to facilitate the transition to successor manufacturing initiatives such as RACE. Trade Secretary Maria Cristina A. Roque earlier said the government has yet to settle its P5.16-billion obligation to CARS participants, including TMP. The CARS program, which preceded RACE, likewise provided incentives for local vehicle production. For manufacturers and suppliers, the issuance of the RACE implementing rules and the settlement of the government's CARS obligations are the near-term developments that indicate how much fiscal backing local production can expect.
Despite an 8.1% decline in sales during the period, TMP remained the country's top-selling automotive brand as of end-September.
Source: BusinessWorld
