Toyota allots P7.5 B for new projects

The Toyota roup plans to spend P7.5 billion this year until 2016 for new pro ects and to increase the lo cal content of the ios ehicle model.

ccording to the Toyota roup, which include parts suppliers that support Toyota s manufacturing operations, the in estments are e pected to be made this year until 2016 to prepare for reco ery in demand from o erseas, as well as to further locali e the ios assembled at the Toyota Motor Philippines orp. s (TMP ) plant in Sta. osa, aguna.

The slowdown in e port performance is only temporary and e ports will soon recover. The booming hilippine auto market will also be an additional source of growth for parts suppliers, T president ichinobu Sugata said.

hile investments are e pected to be made, the Toyota Group is seeking support from the government especially as many automotive firms are considering plans to pour in additional funds for e pansion.

A ma or factor being considered in investment decisions is the approval of the much anticipated new automotive manufacturing industry roadmap.

Appro imately 300 million worth of investments are being considered in view of the forthcoming new auto policy. inal decisions will only be made once the government finally issues the auto road map, the Toyota Group said.

Amid e pectations of slower demand from overseas, the Toyota Group has slashed its forecast for total e ports this year.

rom an initial pro ection of around 1 billion worth of e ports this year, the Toyota Group now e pects its total outbound shipments to reach 8 7 million.

The new forecast is four percent lower than the 3 million worth of e ports in 2013.

ecline in domestic demand is foreseen in Thailand given the political situation, while market contraction is e pected in apan following the implementation of higher consumption ta beginning April 2014, Sugata said.

As of the first quarter, the Toyota Group’s e ports have reached 216 million.

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