According to industry sources, Ty is seriously exploring the possibility of exporting anywhere from 2,500 units to 20,000 units a year of the Philippine-made Toyota Revo to Israel, especially since there is currently still no local subsidiary of Toyota in that country.
Ty’s emissaries have reportedly approached the Board of Investments (BOI) to check out the necessary requirements of approvals to go ahead with such an ambitious export plan.
The government is currently encouraging local automotive firms to export Philippine-assembled motor vehicles.
In fact, the government recently drew up an Automotive Export Program (AEP) which offers fiscal incentives to local motor vehicle manufacturers who export part of their production.
To date, however, only Ford Motor Company Philippines has qualified to participate in the AEP.
Ford locally assembles the Ford Lynx passenger car and Escape sports utility vehicles which it also exports to Thailand.
Based on a minimum export requirement, the AER participant is entitled to some tax credits.
Ty’s reported plan would give a big boost to the local automotive industry which continues to suffer from low domestic sales.
One possible kink though to Ty’s plan is that such an export program may need to get approval from Toyota Japan.
The problem with getting Toyota Japan’s go signal is that it may opt to designate other Toyota subsidiaries in Indonesia or China to export to Israel.
One thing the group of Ty is banking on is that the Philippines has a good and established diplomatic relationship with Israel.