Toyota Parts for Japanese Cars assembled in Philippines
Michinobu Sugata, president, Toyota Motor Philippines Corp. (TMP) announced recently that the company would double the local auto parts content of its vehicles that were assembled locally by 2012, by sourcing more parts in the Philippines itself. Sugata said that TMP has plans to raise the local content for its locally assembled best selling models Innova and Vios from the current 20 to 25% to around 40 %.
Toyota Motor Philippines has urged the government to introduce measures to attract Japanese auto parts makers who have plans for diversifying their production business beyond Japan to set up operations in the Philippines.
Sugata pointed out that Japanese manufacturers are aware of the high potential of the Philippines, adding that there was an excellent investment opportunity because of the Japanese yen’s appreciation. He said now was the best time to invite the Japanese auto parts manufacturers to the Philippines because besides the robust yen and the recent disasters in Japan that are compelling them to review their current supply chain, there were also other factors in favor of the country. For instance, the Philippines has a strong BPO industry and robust OFW remittances that play an important role in maintaining a stable business environment.
Popularity of Japanese Cars in Philippines
Sugata said that with leading two-wheeler manufacturers like Honda and Suzuki making huge investments for expanding the local assembly of their motorcycles, the motorization of the Philippines was gathering speed. He added that after the two wheel makers, the four wheel manufacturers would follow. Read the rest of this entry »