Toyota’s target output under CARS in peril amid pandemic

by Louella Desiderio (The Philippine Star), 21 Aug 2020

MANILA, Philippines — Toyota Motor Philippines Corp. (TMP), one of the participants in the government’s Comprehensive Automotive Resurgence Strategy (CARS) program, said it may be difficult to meet its production target under the program due to the COVID-19 pandemic.

TMP first vice president Rommel Gutierrez said in a press conference yesterday that vehicle models enrolled under the CARS program have been badly hit as the pandemic has affected demand and resulted in a slowdown in sales.

“The danger there is that there are commitments under the CARS program that we have to meet and definitely, with all this negative impact on the automotive industry, there is a threat that the participants of the CARS program may not be able to achieve the target volume as committed,” he said.

Under the CARS program, the government grants incentives to participating automotive firms to encourage investments in local manufacturing of vehicles.

To avail of the incentives, participants need to manufacture at least 200,000 units of the enrolled vehicle model within a period of six years.

TMP’s entry to the CARS program is the Vios sedan model.

Apart from TMP, Mitsubishi Motors Philippines Corp. is also participating in the CARS program with the Mirage as its entry vehicle model.

Gutierrez, who is also president of the Chamber of Automotive Manufacturers of the Philippines Inc., said at this time, it would be appropriate to review the policies and conditions of the government support.

“We need appropriate assistance and collaboration with the government so that we could maintain local production and at the same time be competitive not only among brands but even in the ASEAN (Association of Southeast Asian Nations),” he said.

He said the survival of the automotive industry is important as it is a major contributor to the economy.

Even as the pandemic continues to affect the automotive industry, TMP continues to roll out vehicles to cater to the market.

TMP’s latest vehicle offering is the Corolla Cross, available in two variants: the 1.8 G CVT and a hybrid option which combines gasoline engine with two electric motors.

Gutierrez said TMP aims to sell 400 units of the Corolla Cross from August to December.

He said this means an average of 75 to 80 units per month, with 40 percent or 30 units accounted for by the hybrid variant.

TMP vice president for marketing Elijah Marcial said the Corolla Cross appeals to both men and women, with a slight leaning toward the latter, who are 35 to 45 years old, forward thinkers and advocates of hybrid technology.

Available in four colors – metal stream metallic, red mica metallic, platinum white pearl mica and attitude black mica – the 1.8 G CVT variant retails for P1.285 million, while the 1.8 V hybrid option is available for P1.650 million.