TOYOTA Motor Philippines Corp. (TMP) is seeking the extension of the Comprehensive Automotive Resurgence Strategy (CARS) incentives program until 2027 to allow the car manufacturer to meet the required production quota.
“The CARS program has to be extended. Three years would be reasonable. We are asking for an extension until 2027 — three years from the original deadline which is 2024, because we were affected by so many factors,” TMP First Vice-President for Corporate Affairs Rommel R. Gutierrez said on the sidelines of the launch of Toyota Mobility Solutions Philippines, Inc. (TMSPH) last week in Taguig City.
TMP has until 2024 to produce 200,000 units of its Vios subcompact car under the CARS program signed in 2015 and managed by the Board of Investments. The other participant in the program, Mitsubishi Motors Philippines, Inc., has until 2023 to produce its Mirage model.
“We are continuing the program. Our commitment to produce 200,000 units is still there. We are currently at full capacity. We are trying to hit the target as soon as possible. But because of relative factors, the original schedule was disturbed,” Mr. Gutierrez said.
As of July, TMP has produced 60% of the 200,000 units required under the program, he said, adding that the company surpassed the 100,000 mark in October last year.
“We want to see it (CARS program) continue. The (program) participants have invested. We have yet to complete in fact our commitments to meet a production volume of 200,000 units,” Mr. Gutierrez said.
“Let’s give it to the government now. They are still discussing internally given the change in administration,” he added.
TMP on Friday inaugurated TMSPH, a wholly owned subsidiary that will serve as a provider of mobility-related services.
“We envision TMSPH to be at the center of the ‘new mobility’ ecosystem as an integrated, ‘one-stop’ mobility solutions provider to help advance businesses and address local communities’ needs,” TMSPH President Ma. Cristina Fe Arevalo said in a statement.
“TMSPH will primarily support the operating efficiency and growth of micro, small and medium-sized enterprises or MSMEs of various industries which are vital in driving economic growth,” she added.
According to TMP, the new subsidiary will offer fleet-connected service, on-demand shuttle booking app, car sharing or rental, logistics matching service, and fleet management service.
TMSPH is also seen to complement efforts in promoting and managing units under the KINTO full operating lease product of Toyota Financial Services Philippines Corp.
In a separate statement, TMP claimed that 95% of users of electrified vehicles in the country are using a model from Toyota or Lexus.
“Based on the recent official figures from the Chamber of Automotive Manufacturers of the Philippines (CAMPI), as of end of June 2022, there are already 1,013 total electrified vehicles sold in the market, surpassing the 2021 total volume of 843 and 2020’s 378. A total of 962 of the 2022 year-to-date sales are Toyota and Lexus models,” TMP said.
“Toyota and Lexus offer the widest range of hybrid electric vehicles in the country today with multiple variants across 10 models — Toyota’s Corolla Altis, Corolla Cross, Prius, Camry, and RAV 4 plus Lexus’ IS, ES, LS, NX and RX,” it added. — Revin Mikhael D. Ochave