Toyota to increase local parts of cars made in Santa Rosa 

Toyota Motor Philippines Corp. (TMPC) is looking at increasing the locally made parts of vehicles produced at its Santa Rosa, Laguna factory, the Vios model in particular, to 40 percent by 2014 in a bid to shrink  logistics costs and raise production levels.

 

To do that, the company will enhance the “localization ratio” of the model by stamping 15 parts at the press plant, TMPC president Michinobu Sugata said in his speech during the ceremonial roll-off of the Vios 2013 in Santa Rosa on Monday.

 

“This will bring improved press technology into the country and allow us to realize our vision of invigorating Philippine manufacturing, which is very important in terms of its great potential for investments, employment and technology,” he said.

 

The plan is to import less parts from Indonesia and Thailand, said Roque Rommel Gutierrez, TMPC vice president.

 

"We're targeting at least 40 percent by 2014. We're currently at 20 percent. 

 

“We'll start this year up to 2014. Before, we import from Indonesia and Thailand," Gutierrez told reporters after Vios launch.

 

The higher number of locally made parts is made possible by a P2-billion investment and technology transfer from the Motomachi Plant, the carmaker's mother factory in Japan, Sugata noted.

 

"The result of all these improvements is a faster production line giving us a 10 percent increase in capacity from 30,500 to 33,300 vehicles per year," he said, adding that TMPC will churn out 36,300 units of Vios and Innova by the end of 2013, or 18 percent over last year's output.

 

Gutierrez noted that the company may increase the capacity to 40,000.

 

"We will continue to expand some more if the market grows, so we can reach 40,000 units per year. But there should also be a stable policy direction and a clear direction for the auto industry which is long term," he said.

 

This year, Gutierrez said they are targeting to sell at least 70,000 units, largely banking on the Philippines' motorization and economic growth.

 

This is from 65,396 units sold in 2012, according to Chamber of Automotive Manufacturers of the Philippines Inc. data.

 

Gutierrez said Vios and Innova remain the top selling models with combined sales accounting for for 40 percent of sales in 2012. Vios accounted for 25.26 percent, or 16,517 of last year's sales.

 

Sugata said the Philippines is the second Asian country to introduce the 2013 Vios which is now in its third generation in Thailand.

 

The model was given pioneer status under the 2011 Investment Priorities Plan of the Board of Investments. — VS, GMA News