Last month, Toyota Motor Philippines Corporation (TMP), joined by core members of its export supplier network, presented a comprehensive performance report during the 26th Toyota Special Economic Zone (TSEZ) Update Meeting.
Held in Parañaque City, the session served as a strategic checkpoint with the Philippine Economic Zone Authority (PEZA), reinforcing Toyota’s commitment to transparency, innovation, and sustained growth within the country’s manufacturing ecosystem.
Toyota Motor Philippines president Masando Hashimoto revealed that in 2024, the Group’s export suppliers delivered a powerful performance, contributing USD1.2 billion in export revenues and securing a commanding 30% share of the nation’s OEM parts and components exports.
However, while the numbers reflect strength, industry sentiment signals caution. Exporters are navigating headwinds in the shifting global trade landscape, with some voicing concerns over proposed reciprocal tariffs by the United States, which could suppress demand and inject uncertainty into long-term planning strategies.
PEZA director general (DG) Tereso Panga assured that the impact of the US tariff on the Philippines will be minimal as the effect will vary on each country’s level of trade exposure to the US market.
“In the case of the Philippines, because we are not a heavy exporter to the US, we will be among those least affected especially with the reciprocal tariff. Assuming the earlier announced tariff would be maintained by the US government, this is something favorable to us, because we happen to have a lower tariff compared to other economies in the ASEAN region,” said Panga.
On the domestic front, Hashimoto cited the 8% growth of the industry sales with 474,000 vehicles sold in 2024. TMP played a significant role in the market, capturing 46% share with an all-time high 218,000-unit sales.
Hashimoto also underscored TMP’s production milestone with the successful launch of its third Completely-Knocked Down (CKD) model, the Next Generation Tamaraw.
On this note, TMP bared to PEZA DG Panga the Company’s plan to apply the Tamaraw model to the Revitalizing Automotive Industry for Competitiveness Enhancement (RACE) Program, saying that it is waiting for the Joint Administrative Order (JAO) by the Department of Trade and Industry, Department of Finance, and Department of Budget and Management. The JAO shall outline the rules and guidelines for participation in the RACE Program.
The Company also expressed that the Toyota Supplier Network welcomes and anticipates RACE as it recognizes the program as a critical catalyst in parts localization and the broader industry growth to sustain the previous capability gains from the Comprehensive Automotive Resurgence Strategy (CARS) Program.
TMP reported that the Tamaraw local production has significantly boosted local supply chains, engaging 44 Tier 1 suppliers and integrating 14 Tier 2 suppliers. TMP’s investments amount to PHP5.5 billion while the Toyota Supplier Network has earlier shared plans to inject PHP500 million for plant capacity expansion, anticipating the success of such light commercial vehicle model in the domestic market.
PEZA DG Panga, for his part, acknowledged TMP’s support to the Philippine government’s “Tatak Pinoy” Strategy through the Toyota Tamaraw, seeing it as crucial for enhancing automotive manufacturing and empowering local industries.