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Philippines: ‘Worst over for auto industry’
MANILA, Philippines — Alfred Ty, chairman of Toyota Motor Philippines (TMP), believes the worst is over and is optimistic the automotive industry as well as other businesses will recover in due time from the negative impact of the COVID-19 pandemic.
TMP, as the leading automotive company in the country, will take the wheel toward recovery as its targets to open its P4.5 billion logistics hub in Batangas in the fourth quarter of the year, Ty said.
“We are optimistic the worst is over. We see the economy improving and that businesses will recover in due time. Every week, there are new developments regarding a COVID-19 vaccine and while this may not be the be-all and end-all solution to this pandemic, it is a welcome development and a sign that progress is happening earlier than expected,” Ty said in a press conference last Friday.
TMP’s 32-hectare facility located near Batangas Port will serve as a gateway to imported vehicles.
The logistics hub will house a pre-delivery inspection and post production installation facility with a capacity 160,000 units per year, and a stockyard that can accommodate at least 4,500 cars at a time.
Similar to its Santa Rosa Vehicle Logistics Center, TMP’s Batangas facility will have an 18-truck lane covered car carrier loading and unloading area.
TMP president Atsuhiro Okamoto said the company remains committed to supporting the goal of the government to stimulate the economy and to prepare for the eventual resumption of motorization in the country.
“The auto industry is a key driver of economic activity and an essential part of the drive to increase mobility. At the heart of the Batangas Vehicle Logistics Hub is our promise of making ever better cars for our customers. Preserving the quality of our vehicles, from production in various plants all over the world, to delivery dealers and customers, efficient logistics is necessary,” Okamoto said.
The announcement comes on the heels of government announcements on safeguard duties on imported vehicles.
TMP is only one of two companies that sells both locally made and imported vehicles. TMP sold over 100,000 units last year, capturing 41 percent of the market.
The P4.5 billion investment adds to the P420 million spent by TMP the past two years on various initiatives including the Santa Rosa logistics expansion, said TMP senior vice president Jing Atienza.
During the press conference, TMP’s top executives also welcomed recent pronouncements by Board of Investments (BOI) officials regarding the possibility of extending the Comprehensive Automotive Resurgence Strategy (CARS) Program in consideration of the impact of the pandemic on car manufacturing and sales.
“We thank the government for considering the extension of the CARS Program. This is very crucial for the existence of local production not only for the existing players but also in attracting additional investment in the industry. In this business of the automotive industry, where the market is still at a growing stage and lower-priced vehicles dominate new cars sold, the key to survival is volume. Economies of Scale is much needed to make investments sustainable, whether a completely built-up (CBU) or completely knocked down (CKD) player, or both.” Ty said.
Source: https://www.philstar.com/business/2021/02/01/2074372/worst-over-auto-industry