SANTA ROSA, Laguna, Philippines — Toyota Motor Philippines Corp. (TMPC) is planning to hike its total production by 18 percent to 36,300 units this year from a year ago as it expects higher demand for vehicles.
Speaking at the ceremonial roll-off of the all-new Vios yesterday, TMPC president Michinobu Sugata said the firm has made improvements in its production line to increase its capacity and be able to manufacture more vehicles.
“The result of all these improvements is a faster production line giving us a 10 percent increase in capacity from 30,500 to 33,300 vehicles per year,†he said.
“We expect to sell more than that number so we plan to actually build 36,300 units of Vios and Innova by the end of 2013, which is 18 percent more than last year, by rendering overtime and holiday work,†he said further.
The improvements made at the company’s plant required the investment of more than P2 billion.
The firm decided to raise the level of its production capability as it expects strong demand for vehicles particularly for the all-new Vios sedan, which accounts for 60 percent of the company’s total sales of completely knocked down units.
“TMP is confident that the new Vios will recharge the market. Anticipating higher demand due to this model’s improved features, we raised the level of our production capability to ensure that what the customers want, we can supply,†Sugata said.
He noted that about 14,594 units of the all-new Vios will be built here from July to December.
Last year, TMPC sold 16,517 units of Vios, making it the country’s best-selling vehicle.
TMPC vice president for corporate affairs Rommel Gutierrez told reporters in the same event the firm is aiming to sell 2,000 units of the all-new Vios per month.
He also said the firm wants its total vehicle sales to reach at least 70,000 units this year from 65,396 units in 2012.
“Drivers (of the higher sales) will be the GDP (gross domestic product) and motorization,†he said.
Moving forward, the company also intends to increase the local content of the
“We are targeting at least 40 percent,†Gutierrez said, noting that about 20 percent of the parts of Toyota vehicles produced here are sourced from the local market.