Toyota to invest P2B in Sta Rosa

MANILA, Philippines - The Philippine unit of Japanese carmaker Toyota Motor Corp. is pouring in more than P2 billion for the production of the new Innova which will undergo full model change and have greater local content.

Toyota Motor Philippines Corp. (TMPC) president Michinobu Sugata told reporters during the company’s 26th anniversary on Tuesday night the firm is investing more than P2 billion for the production of the new Innova.

“We need additional investment for model change and localization. The preparations already started,” he said.

At present, the Innova model being assembled at TMPC’s plant in Sta. Rosa, Laguna has 30-percent local content.

“Probably (with new) Innova, we are going to hit more than 40 percent (local content),” Sugata said.

Aside from the Innova, TMPC manufactures the Vios.

Sugata said the firm expects the total production volume of the Sta.

Rosa plant to reach over 41,000 units this year, up from about 36,000 units  in 2013 amid strong demand for both the Innova and Vios.

In July, the firm set a new record production volume with a total of 3,998 units assembled at the plant despite typhoon Glenda.

For the January to July period, TMPC’s total production output reached 24,330 units, 33 percent higher than in the same period last year.

Aside from achieving higher production volume this year, the firm is also optimistic it can beat its 2013 all-time high sales of 75,587 units this year.

From an earlier projection of selling about 90,000 units for this year, TMPC now expects to sell nearly 100,000 units.

“Demand is very high…This is a good year so it is possible for us to reach 100,000,” Sugata said.

As of end-July, TMPC has sold 58,635 units, a 43-percent increase from the same period last year.

The firm is banking on favorable economic conditions as well as vehicle models launched earlier this year to support its positive sales performance.

TMPC has so far rolled out the Corolla Altis, Yaris, Innova and Wigo.

Within the month, Sugata said the company will be unveiling a sports utility vehicle under its luxury brand Lexus.

Towards the end of the year, he said the firm is also set to launch a Lexus sports car.