Toyota Philippines to invest 1 billion pesos to raise Vios local content
MANILA, NNA – Toyota Motor Corp’s Philippine subsidiary said it will invest around one billion pesos ($19 million) to increase the local content this year for the production of its small sedan Vios, seeking to save business taxes further under the Comprehensive Automotive Resurgence Strategy (CARS) program.
The CARS program is part of the Philippine government’s efforts to revitalize the country’s automotive industry by giving tax incentives worth up to 9 billion pesos ($171.7 million) each to three car makers in exchange for producing more than 200,000 units locally in six years from the start of the production of their CARS-approved units.
Toyota Motor Philippines (TMP) President Satoru Suzuki said they will increase the proportion of Vios parts to be procured locally from the current 52 percent to 58 percent by the end of the year.
This year the company will mainly invest in the large press machines and presses, used for the domestic production of Vios’ side member panels, a key component of the vehicle’s substructure, which will then raise the unit’s local content.
The CARS program requires more than 50% of the total weight of an enrolled car unit to be procured locally, and the Vios has already exceeded that standard.
The government approved TMP’s Vios model under the CARS program in June 2016. TMP began its production the following month.
The company plans to invest more than 5 billion pesos ($95.4 million) to strengthen its production system, and has implemented the introduction of large injection molding machines and local production of other press parts.