Toyota gears up to raise Laguna plant output

MANILA, Philippines - Toyota Motor Philippines Corp. (TMPC) plans to invest about P40 million next year to hike its output at its plant in Santa Rosa City in Laguna on expectations of higher vehicle demand.

“We are going to speed up the (production) line so we may have to have some investment for next year,” TMPC president Michinobu Sugata said in a chance interview.

The plant, which can produce 33,000 units per year, is operating at full capacity, with overtime of three hours per day.

Sugata said that while the plant’s capacity is at 33,000 units per year, the company expects total production this year to reach between 35,000 to 36,000.

With around P40 million worth of investments to be poured in next year, he said TMPC wants to raise its total output to 38,000 to 39,000 units.

The higher production volume is intended to meet the expected growth in demand for vehicles here amid the country’s positive economic performance.

“This year, total market we project would be more or less 210,000 (units). Next year, we are projecting 230,000 (units).We are hoping sales will increase. As a result, we have to increase production,” Sugata said.

TMPC currently produces two vehicle models, the Vios and Innova.

Asked if there are plans to manufacture a third model locally, Sugata said it would be important for the roadmap for the automotive industry to be released first.

“I can see clearly  (government’s) attitude to promote the automobile manufacturing. I think it is good,” he said.

He noted however that it would be better if the roadmap is released soon.

Trade Secretary Gregory Domingo said earlier the DTI is studying what incentives could be given to support the local automotive industry.

He said the DTI wants to give incentives to firms which meet a minimum production volume of 40,000 units per model per year under the road map to allow them to export to other countries and become competitive.

Sugata said that while there are no definite plans yet for the assembly of a third vehicle model here, TMPC would be introducing a vehicle model change in the first-half of next year.

TMPC has established itself as the market leader as it accounts for the bulk of total vehicle sales in the country.

As of end-October, TMPC has sold 61,153 units, up 15.1 percent from the same period last year.

The firm expects its total sales to reach over 75,000 units this year.

TMPC’s full-year 2012 sales reached 65,396 units.

Meanwhile, Toyota Motor Corp. of Japan with its local affiliates TMPC and Toyota Financial Services Philippines Corp. have contributed a total of P10 million for ongoing relief efforts for victims of typhoon Yolanda in Eastern Visayas.

TMPC has a dealership in Tacloban in Leyte, one of the areas hit by the typhoon.

“As far as I heard, the dealership itself did not have a big damage,” Sugata said.