Toyota Motor Philippines Corp. (TMP) expects vehicle production to decline this year amid softer market demand, which the automaker linked to higher oil prices stemming from the Middle East conflict.

“It’s lower this year at maybe close to 60,000. Last year was about 63,000,” TMP Senior Vice-President for the Marketing Division Sherwin T. Chua Lim told a media roundtable on Tuesday.

TMP produced a record 63,803 vehicles last year. The Japanese automaker manufactures the Vios, Tamaraw, and Innova at its 82-hectare Toyota Special Economic Zone in Sta. Rosa, Laguna.

As of end-August, the company’s production volume stood at 38,221 units, down 10% from the 42,469 units it built in the same period last year. The Vios accounted for 48% of output over the eight-month stretch, with 18,321 units, followed by the Tamaraw at 12,468 units (33%) and the Innova at 7,432 units (19%).

TMP said elevated oil prices amid Middle East tensions had hurt vehicle demand, particularly for gasoline-powered models. Its vehicle sales fell8.2% to 118,706 units as of end-July, according to the latest data from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI). Toyota remained the country’s top-selling automotive brand during the period, CAMPI data showed.

Ride-Hailing Slots

Separately, TMP has urged the Land Transportation Franchising and Regulatory Board (LTFRB) to review its decision to open 7,500 additional ride-hailing slots in Metro Manila that exclude conventional hybrid electric vehicles (HEVs).

Under Memorandum Circular No. 2026-084, which took effect on Aug. 27, the LTFRB opened new electric-vehicle taxi and transport network vehicle service (TNVS) slots in Metro Manila exclusively to battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). The circular states that conventional internal combustion engine (ICE) vehicles and HEVs other than PHEVs, along with “other vehicle technologies that do not fall within the BEV or PHEV classifications shall not be eligible for the slots opened herein.”

In its appeal, TMP cited Republic Act No. 11697, the Electric Vehicle Industry Development Act (EVIDA), which includes HEVs in the classification of electric vehicles. The automaker also pointed to the government’s P60-billion Electric Vehicle Incentive Strategy, which counts HEVs among the vehicle technologies covered by the country’s push for domestic EV manufacturing. By those definitions, the circular’s eligibility rules are narrower than the government’s own EV classification.

“We also believe modern low-displacement engine technologies in today’s compact ICE vehicles have significantly improved in terms of fuel efficiency and reducing emissions,” TMP said. “Including these vehicles in the options can benefit both the operators and the riding public.”

A technical study by the LTFRB estimated that Metro Manila needs about 64,000 TNVS units to meet passenger demand, compared with roughly 39,337 units currently authorized — a shortfall of more than 24,000 units. CAMPI data showed Toyota was the top-selling HEV brand as of end-July, with 12,838 units sold during the period — the technology at the center of its appeal.

— Beatriz Marie D. Cruz, BusinessWorld