Toyota to invest P50-M in Sta Rosa plant

Toyota Motor Philippines Inc. is investing another P50 million to develop a 52.67-hectare plant in Sta. Rosa Laguna in preparation for its plan to export Asian utility vehicles (AUVs) to other ASEAN countries.

Toyota has an existing facility in a 25-hectare area, also in Sta. Rosa, Laguna.

Company sources said the construction of the bigger plant is in preparation for an expected increase in demand and capacity once Toyota goes full blast in its shipments of AUVs to ASEAN-member countries.

Toyota had already done trial exports of AUVs to Vietnam.

In its 25-hectare plant, Toyota’s production is about 60,000 units a year, or only about 30 percent of its current capacity.

The existing plant in Sta. Rosa, Laguna also produces parts for the Revo, engine transmissions, constant velocity joints, combination switches and combination meters.

The effectivity of the ASEAN Free Trade Agreement (AFTA) next year has prompted local car manufacturers to expand their production capacity and engage in complementary exportation of specific vehicle models.

Despite the overall drop in demand due to global economic crisis, Toyota managed to beat its local competitors and remained the country’s top seller of passenger and commercial vehicles.