Toyota auto parts exports seen hitting $1B next year

MANILA, Philippines - Auto parts exports of the Toyota Group in the Philippines are seen to rise to $1 billion next year from this year’s estimated $954 million as suppliers plan to expand production.

In a statement yesterday, the Toyota Group said it is optimistic export sales would rise to $1 billion by next year based on the expansion plans of the group’s individual suppliers reported to the Philippine Economic Zone Authority (PEZA).“The upbeat outlook is based on 2014 plans shared by individual suppliers,” it said.

 Among those who disclosed expansion plans starting next year are TRP Inc., Philippine HKR Inc., Philippine Auto Components Inc., Jeco Autoparts Philippines Inc., Koyo Manufacturing (Phils.) Corp., and Technol Eight Philippines Corp.

“Rest assured that PEZA will continue to support you in the processing of your requirements as you carry on with additional investments and expansion projects,” PEZA director general Lilia De Lima said.

As of the first-half of the year, shipments of the Toyota Group reached $480 million, down slightly from the $490 million in the same period last year.

The Toyota Group includes Toyota Autoparts Philippines Inc. (TAP) and other domestic makers of vehicle parts exported to Toyota’s assembly plants in other parts of the world.

The TAP’s products are the G-Type manual transmission, R-Type manual transmission and constant velocity joint.

The TAP exports 95 percent of its output to other countries such as Thailand, Indonesia, India, South Africa, Malaysia, Vietnam, Taiwan, Japan, Pakistan, and Venezuela.

While suppliers under the Toyota Group are expanding, Toyota Motor Philippines Corp. president Michinobu Sugatasaid continued support from the government would be needed by local vehicle assemblers.

He said Toyota Motor Corp. (Japan) recognizes the potential of automotive manufacturing in the Philippines and the roadmap initiated by the Department of Trade and Industry (DTI) would be an important factor in Toyota’s medium-term local production strategy.

Toyota is waiting for updates on the planned high-level DTI and PEZA visit to Japanese auto suppliers as a follow-up activity to the Automotive Investment Seminar held in Japan in March this year.

The automotive investment seminar, which had officials of the DTI as speakers in Japan, generated interest in the Philippines as a potential alternative auto parts production base in the Southeast Asian region.

The Toyota Group believes the follow-through activities with suppliers would support the forthcoming new auto policy.

Sugata said that aside from the release of the automotive industry roadmap, the firm supports House Bill 390 or the Automotive Manufacturing Act which was identified as one of the priority bills by the House Committee on Trade and Industry.

“A legislated industry program is an important factor for long-term investment planning,” he said.