Car titan seeks clear EV policy
Any policy shift requires careful study and coordination between government and industry.
THE expansion of a full electric line-up from Lexus to other vehicle models signals Toyota Motor Philippines’ continued push to broaden electrification options.
Photograph courtesy of Toyota Motor Philippines
The government should conduct a more deliberate review of electric vehicle (EV) incentive programs, noting that investments in electrification must be backed by sufficient scale and regional competitiveness to be sustainable.
Speaking to reporters after the 42nd Annual Joint Meeting of the Philippine and Japan Economic Cooperation Committees on 19 February, Toyota Motor Philippines (TMP) chairman Alfred Ty stressed that any policy shift requires careful study and coordination between government and industry.
“In any program, in any car model, there have to be economies of scale for it to work,” Ty said, noting that while electrification is gaining momentum, it remains in its early stages.
He explained that major manufacturing decisions are not made in isolation.
“For Toyota, when we study, we need to see the whole region. What is the capacity? What is the excess or shortage in this country or that country for it to make sense to open in another country? It has to be studied thoroughly,” he said.
Ty acknowledged that the Philippine EV market is still developing.
“It’s still very new,” he said.
Cautious view
The Toyota chief also signaled a cautious outlook for the automotive market this year, following a sharp slowdown in the fourth quarter of 2025.
“In our New Year event earlier, we are taking a conservative stance, maybe a range of 5 percent growth, maybe what happened last year, 4 percent growth,” he said.
He described the fourth-quarter drop in demand as “shocking everyone,” adding that broader market confidence will determine whether spending picks up in the coming months. The first quarter, he said, will be key in gauging whether recovery could begin in the second quarter.
TMP, he added, is prepared to ramp up if clearer signs of an uptrend emerge.
Hybrid momentum builds
While full battery EVs remain nascent, Ty said hybrid vehicles continue to post steady gains, partly because they do not depend on charging infrastructure.
“Electrification will continue to grow, and the trajectory so far is encouraging,” he said, citing support from the Electric Vehicle Industry Development Act.