Toyota export revenues hit $665 million in 2023

MANILA, Philippines — Toyota Group generated over $600 million worth of revenues from exports of automotive parts from the Philippines last year.

Speaking at the Board of Investments’ Auto Reverse Trade Fair yesterday, Toyota Motor Philippines Corp. (TMP) first vice president for purchasing division Richard Valdez said the Toyota Group accounted for approximately 30 percent of total Philippine auto exports equivalent to export revenue of $665 million last year.

Philippine auto parts exports were valued at $4.14 billion in 2023, while Toyota Group’s exports of auto parts amounted to $1.26 billon last year.

Valdez told reporters that last year’s export revenues were lower than the previous year’s as vehicle sales in export markets like Thailand declined.

He attributed the decline in vehicle sales overseas to high borrowing costs.

“As a target for every year, we (want to) increase (exports)… But that depends on the (vehicle) sales of other countries,” he said.

TMP is participating in the Toyota regional production network through parts exports.

Valdez said TMP’s suppliers could integrate into the global supply chain through direct exports and indirect exports.

To strengthen indirect parts exports, TMP established Toyota Motor Philippines Logistics Inc. (TLI), an ecozone logistics service enterprise dedicated to warehousing, logistics and export support services.

Valdez said TLI’s export operations generate approximately $200 million a year and provide opportunities to TMP suppliers who would otherwise have difficulty exporting directly on their own.

TLI’s exports Philippine-made auto parts to over 31 destinations in five continents.

Last year, TLI’s top export destinations are Thailand, South Africa, Brazil, Taiwan and India.

Valdez said TMP also continues to localize the supply chain.

Through the government’s Comprehensive Automotive Resurgence Strategy program, which provides fiscal support for the manufacture of enrolled vehicles, he said TMP has achieved a localization level for the Vios that is higher than the 50-percent requirement.