Toyota under siege

While it will take time, market analysts are now talking of Toyota Motors Philippines ceding its market dominance, primarily with the entry of electric vehicles.

“We are starting to notice more BYD (AC is its local partner) vehicles on the road. The Chinese automaker has so far introduced seven models, including two hybrids, in the past 18 months,” according to Malaysian global investment bank Maybank.

Tesla also recently entered the market with two models introduced at its first dealership in Bonifacio Global City.

While these brands are still small in comparison to the whole industry, they are adding to the competition.

Toyota will remain the market leader with its strong resale value and large dealership network, but Maybank forecasts it may cede market share moving forward.

Until last September, Toyota remained in line with Maybank’s forecast with 159,093 vehicles sold (10.3 percent higher from a year ago).

Unit sales were expected to remain strong for the rest of the year and to retain an eight-percent growth forecast for 2025.

However, a weaker currency may hurt Toyota’s margins.

With the weaker currency assumption, the gross profit margin (GPM) assumption for next year was reduced to 11.2 percent from 12.8 percent.