TOYOTA Motor Philippines (TMP) may fall short of setting another production record this year since vehicle demand is weak, a company official said.
TMP is the automotive unit of listed GT Capital Holdings Inc.
TMP Marketing Division Senior Vice President Sherwin Chua Lim said that this year, the automaker expects to produce nearly 60,000 vehicles, below the record 63,803 units assembled last year.
From January to August, TMP produced 38,221 vehicles, down 10 percent from 42,469 units in the same period last year.
The company said production began recovering in July following disruptions caused by the US-Iran war, but demand remained soft due to broader economic conditions.
The Vios accounted for the largest share of production in the eight-month period with 18,321 units, or 48 percent of the total. The Tamaraw followed with 12,468 units (33 percent), while the Innova contributed 7,432 units (19 percent).
Chua Lim said monthly Vios sales previously exceeded 3,000 units, but the introduction of the Ativ hybrid electric sedan has taken part of its market. TMP continues to produce entry-level Vios variants locally, while the Ativ serves the higher-end segment.
TMP is maintaining Tamaraw production close to the plant’s monthly target of 1,800 units but has reduced Innova output.
Elijah Marcial, TMP first vice president for vehicle sales, said the company follows a production ratio of one Innova for every two Tamaraws and three Vios units.
Chua Lim said this means TMP would have to raise production of all three models simultaneously to increase overall output.
Vehicle sales also declined by 9 percent to 133,300 units from January to August, compared with 146,357 units a year earlier.
Passenger car sales rose 15 percent, supported by demand for new models and electric vehicles.
Commercial vehicle sales, however, fell 15 percent.
Despite the decline, TMP ranked as Toyota’s ninth-largest market worldwide.
GT Capital’s shares dropped P17.80, or 4.12 percent, to close at P414.20 each.
