Toyota Motor Philippines Corp. (TMP) said it expects market conditions to improve despite volatile oil prices and supply chain pressures, positioning the country's largest automaker to rebuild sales momentum and increase vehicle supply.

"While oil prices and supply chain pressures remain volatile, we are seeing encouraging signs of market recovery, and we are steadily rebuilding our sales momentum," TMP President Masando Hashimoto said in a statement on Wednesday.

Mr. Hashimoto said the company is prepared to increase supply for its high-demand models as conditions improve.

"We are ready to respond with significantly better supply for our high-demand models," he said.

TMP noted that the automotive industry has demonstrated resilience despite geopolitical tensions and global energy security concerns.

"Despite a market softening due to recent geopolitical headwinds and global energy security issues, TMP cited the automotive industry's quick pace to rebound after a brief economic pressure," the company said.

The optimistic outlook follows an announcement by the Department of Energy of lower pump prices this week, driven by softer global oil prices. Fuel costs have been a key factor influencing consumer demand in the Philippines, where vehicle ownership is sensitive to transportation expenses.

TMP operates the 82-hectare Toyota Special Economic Zone in Laguna, which manufactures and exports automotive parts and components. The facility has been a cornerstone of Toyota's local manufacturing operations in the Philippines and aligns with the government's Comprehensive Automotive Resurgence Strategy program, which provides incentives to automakers producing vehicles domestically.

The company said it has produced more than 1.21 million completely knocked down (CKD) vehicles to date, including the Corolla, Lite Ace, Crown, Corona, Tamaraw, Revo, and Camry.

Production of the Vios, Innova, and the revived Tamaraw helped TMP achieve a record production volume of 63,803 units in 2025, the company said. The Tamaraw, originally a fixture on Philippine roads from the 1970s through the early 2000s as a workhorse utility vehicle, was reintroduced to tap demand from small businesses and fleet operators.

TMP remained the country's largest automotive company in the first half of the year, despite a 9.3% decline in end-June sales to 100,909 units. TMP has held the top sales position in the Philippine automotive market for over two decades.

The Philippines remains Toyota's third-largest market in Southeast Asia and its 10th largest market worldwide.

— Beatriz Marie D. Cruz