Toyota Philippines eyeing 10% hike in saleson brisk economic activity

AUTO INDUSTRY giant Toyota Motor Philippines Corp. is eyeing a 10% increase in sales this year, with popular vehicle brands Altis, Vios and Innova likely to lead the growth. Company President Hiroshi Ito said Toyota’s target is a few notches higher than the automotive industry forecast of 6% growth or total sales of about 125,000 units. "The remarkable market growth of 2007 attributed to the favorable political and economic situation will help us achieve our targets for 2008. Toyota, on its part, will continue to challenge the industry and ourselves by targeting 10% growth," he said. "This year, you can expect aggressive product improvements and timely introduction," he added. Lawyer Rommel R. Gutierrez, vice-president for management services and corporate planning, said Toyota Motor Philippines is confident of maintaining its position as the top car company in the local industry due to its strong product lineup. In an interview late last year, company vice-president for vehicle sales Raymond Rodriguez said the company is expecting to sell close to 50,000 cars this year. Toyota Motor Philippines topped the industry in 2007 sales with 45,091 units, up from 38,258 in 2006. It took 38.24% of the market. The company’s previous record high was made in 1996 with 42,800 units sold. "Coupled with a more stable economy, we could hit our target of about 49,000 cars in 2009. We expect to sell more of our key models such as the Toyota Innova and the new Vios. We also expect strong sales of Toyota Altis," he told BusinessWorld. With 2008 sales of close to 50,000 units, the country’s top auto company is poised to corner about 40% of the market. Toyota started manufacturing the new Vios at its Laguna plant early last year. In March, the company will launch its newest model, the new 2008 Corolla Altis. The local car industry sold close to 20% more cars last year on the back of strong economic activity, coupled with new models and the government’s more active campaign against the importation of used vehicles. In a report, the Chamber of Automotive Manufacturers of the Philippines, Inc. and the Truck Manufacturers Association said the industry finished 2007 with sales of 117,903 units, surpassing the target of 108,000 units by 9%. For this year, the industry is still looking at a 5% to 7% growth. Honda Cars Philippines, Inc. came next to Toyota in vehicle sales, selling 17,321 cars from 13,885 in 2006. It cornered 15% of the market. Mitsubishi Motors Philippines Corp. was third with 15,005 vehicles sold from 12,518 in 2006. Toyota also topped sales in the passenger car and commercial vehicle segments. The company sold 15,328 sedans last year from 13,918 in 2006. It had 37.08% of the market in this segment. Toyota also sold the most number of commercial vehicles at 29,808 from 24,340 in 2006 for a market share of about 39%. — Bernardette S. Sto. Domingo, BusinessWorld