TOYOTA Motor Philippines Corp. (TMP) is projecting a possible 5% growth in auto parts exports next 12 months as demand recovers in other countries, an organization official said.
“If next 12 months it can increase, roughly… it can be 5%,” TMP First Vice-President for Purchasing Richard B. Valdez told reporters on Tuesday.
Exports are to this point flat this 12 months, he noted. “Yearly, a minimum of we would love to extend, but that may still rely on the sales of other countries.”
In 2023, the Toyota group accounted for 30% or $1.26 billion of the whole Philippine auto parts exports. These represented $665 million in export revenues.
Nevertheless, the automotive manufacturer’s share within the auto parts exports that 12 months was lower than 33% a 12 months prior.
“It’s just a little bit down because since we’re exporting, these (represent) the sales of other countries like Thailand and other ASEAN (Association of Southeast Asian Nations) markets,” Mr. Valdez said.
There are lower sales in other markets because of issues with financing as rates of interest remain elevated, he noted.
Data from the ASEAN Automotive Federation (AAF) showed that motorcar sales in Thailand declined 9% to 775,780 units last 12 months.
Meanwhile, Thailand’s motorcar sales from January to September dropped 23.5% to 438,303 units.
Rizal Industrial Banking Corp. Chief Economist Michael L. Ricafort said it is feasible for the country’s total auto parts exports to extend next 12 months.
“That is consistent with the incontrovertible fact that the Philippines is one among the fastest growing in vehicle sales and production in ASEAN lately,” he said.
AAF statistics showed that Philippine motorcar production grew 18.3% within the January-to-September period to 97,139 units. It was the second-fastest within the region.
Meanwhile, a joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. and Truck Manufacturers Association showed that auto sales grew 8.9% to 384,310 units as of October.
Mr. Ricafort added that since Toyota is one among the world’s biggest automakers, it is feasible for the corporate to further diversify its global supply chains.
“It would be prudent for them to diversify the auto parts exported from the Philippines to the remaining of [its] production facilities worldwide,” he said.
In 2016, TMP established Toyota Motor Philippines Logistics, Inc. (TLI) to strengthen its indirect exports of OEM (original equipment manufacturer) and aftermarket parts and accessories to Toyota’s global network.
As of the top of 2023, TLI has 13 indirect export suppliers, which generate around $200 million annually.
In line with Mr. Valdez, the highest destinations for Philippine-made parts last 12 months were Thailand, South Africa, Brazil, Taiwan, and India. — Justine Irish D. Tabile
