Toyota Motor Philippines Corp. (TMPC) is looking at spending as much as P2.5 billion this year, as the Japanese auto- maker prepares for the possible full model change of the Innova.
TMPC President Michinobu Sugata said the amount will be used for factory expansion and other initiatives for the potential model change of the Innova in its Santa Rosa, Laguna plant. Specifically, TMPC is targeting to expand its paint shop and speed up its assembly line to meet its goal of increasing its production of the Innova and the Vios.
“From 41,644 units last year, we’re increasing output to 43,000 this
year,” Sugata said. The TMPC official, however, clarified that the proposed capital expenditure has yet to be approved by the company’s board.
TMPC’s Santa Rosa plant is capable of producing a combined 35,000 units of the Vios and the Innova every year, but employees worked overtime to exceed output in 2014.
It remains to be seen, however, if the Board of Investments (BOI) will allow TMPC to get incentives for remodeling the Innova. The BOI has specified that only new models, and not improvements, will enjoy incentives. Sugata hinted that TMPC may stick with the Innova despite the possibility that the company may not get incentives from the BOI.
The Japanese automaker manufactures the Vios and the Innova at its Santa Rosa facility. TMPC is targeting to sell as much as 110,000 units of vehicles in the Philippines this year.
Known as the market leader in the local auto industry, TMPC sold 106,000 units last year, 40 percent higher than its sales in 2013.