Roadways to the future
Mobility in the Philippines just got a boost. Last August 12, 2022, Toyota Motor Philippines (TMP) – the leading auto maker in the country –introduced Toyota Mobility Solutions Philippines (TMSph). The new company is a wholly owned subsidiary of TMP and is meant to be a one-stop shop for a range ofinitiatives to meet the growing mobility needs of Filipinos. It is the first such type of venture by Toyota in the ASEAN region, along the lines of similar companies set up by Toyota in Europe, the United States and Japan.
TMP sees the return of motorization in the Philippines following government’s efforts at reopening the economy and restoring full mobility to the country. This year, motor vehicle sales in the Philippines are projected by the Chamber of Automotive Manufacturers of the Philippines, Inc (CAMPI) to reach 336,000 units. Although this will be 20 percent shy of pre-COVID levels, it is a 20 percent growth versus 2021, a clear indication that the market is on a recovery trajectory.
Actually, the density of motor vehicles in the Philippines is one of the lowest in the ASEAN. The number of motor vehicles per 1,000 population is only at 41. This compares with Indonesia at over 60 and Thailand with close to 200. Although road congestion in Metro Manila may appear to belie the numbers, motorization still has a lot of roadway to expand. The Marcos administration announced plans to “Build Better More” to enhance inter-island connectivity across the archipelago. As well, the National Economic Development Authority (NEDA) and Department of Finance (DOF) project a sustained growth in gross domestic product by six to seven percent annually. The realization of these two pronouncements will surely spur demand for vehicles.
In particular, demand for light commercial vehicles is expected to rise in support of Micro, Small and Medium Enterprises (MSME) that comprises 99.5 percent of businesses in the Philippines. As this happens, there will be a corresponding rise in demand for solutions to enhance the productivity and efficiency of vehicle fleets. These solutions will integrate the most recent trends in the “usership” of automobiles, such as ride sharing, mobility as a service and connected fleet services. In addition, the need for access to financing by MSME’s is also expected to grow to support their mobility acquisitions.
TMP Chairman Alfred V. Ty, in his welcome remarks at the launch of TMSph said, “We remain optimistic about the long term outlook for the Philippine auto market In a country of 110 million people that is the youngest in the region, mobility is an essential part of economic development.” He added, “Toyota is preparing to support the rapid and sustained economic growth of the country.”
In his keynote address, Secretary Alfredo E. Pascual of the Department of Trade and Industry (DTI) also underscored the primacy of mobility. He said, “Economic and social progress requires mobility. People can use it to access goods, services, information, employment, information, markets, as well as getting in touch with family and friends. Mobility indeed can improve the quality of life.” He further cited that, “As cities become ‘smarter,’ new technologies like artificial intelligence (AI), sensors, and intelligent systems could be used to build solutions that make mobility more efficient and effective. This is especially true as the mobility ecosystem becomes more digitally connected and shared.”
Secretary Pascual identified three areas that Toyota and the DTI can collaborate in. One is in preparing MSMEs through training programs so that MSMEs can maximize the use of their vehicles for their business. A second area for collaboration is through the DTI's upcoming Center for Artificial Intelligence Research, a Center of Excellence in AIR&D application in the country that will cover both small and large businesses. Thirdly, DTI and Toyota, together with the country's higher education institutions, can collaborate in spurring innovation among the youth that will prompt innovative transport and mobility solutions.
TMSph ushers in a new era where customers are becoming co-creators of value for Toyota, helping to ascertain the right services to meet their needs. Ms. Tini Arevalo, President of TMSph acknowledges the rapid changes in the mobility landscape. “We face many challenges in achieving efficiency in moving people and goods in the country,” she said. She related that while the world was struggling to survive the impact of the COVID-19 pandemic, Toyota was busy preparing modular systems and applications which could later on integrate into a larger multi-modal transport system. Their goal was to provide a suite of technologydriven solutions to address day-to-day mobility challenges and bring forth a new lifestyle of convenience in business and daily life.
The concept of new mobility may seem like a distant prospect for the regular motorist of today. But the advent of connected, autonomous, shared and electric technology may well propel us to that future at warp speed.