Toyota Phils forecasts zero growth in 2009

Toyota Motor Philippines (TMP), the largest automotive seller in the country, expects a zero growth rate in car sales next year as a result of the expected drop in global demand for cars.

“We will have flat growth for next year,” TMP vice president for corporate affairs group Rommel T. Gutierrez told The STAR in an interview.

This is the first time Toyota will not post an increase in local sales.

However, Gutierrez stressed that the local car industry is better off than other markets.

Mother company Toyota Motors Corp. (TMC) decided to cut its global sales forecast owing to the slowdown in demand from the US and European market.

The Japanese group, which includes Daihatsu Motor and Hino cars, now expects to sell 9.7 million cars and trucks in 2009, 700,000 fewer than its previous forecast.

For the local market, Gutierrez said Toyota will still reach its goal of 10- percent growth for this year. This figure is double the industry target of only five-percent growth for the year.

To attain this, Gutierrez said they would have to sell close to 50,000 units this year. The industry target is 124,000 units.

Gutierrez admitted that this year would be more challenging than the last but strong branding and the introduction of new product lines will help them achieve their goal.

“We are the only car company in the country which has attained pre-financial crisis results in terms of sales,” he noted

Meanwhile, Gutierrez said the crisis has not dampened their plan to strengthen Toyota’s local complete knocked down operations.

“We are going to focus on CKDs,” he said. “This would be the focus of Toyota ’s initiative next year,” he added.

The car manufacturer will start selling its high end brand Lexus in the Philippines in 2009.

“We want to enter luxury car market by providing our affluent customers with great products and exceptional service,” Gutierrez said.

Late last year, Toyota held the groundbreaking for the new showroom in The Fort. The three-floor showroom will be ready by the end of 2008.

Once operational, Gutierrez said the showroom will house 11 models of Lexus.

“We expect to sell 300 units during our maiden year,” Gutierrez said.

All the Lexus that will be sold in the Philippines will be imported from Japan . The Lexus is expected to compete head to head with European brand BMW.