Toyota Group seeks sustained government support

Timely implementation of government programs and sustained support for the country's automotive industry could help maintain local manufacturing, strengthen supplier capabilities and prepare the sector for emerging opportunities.

With this, Toyota Motor Philippines Corp. (TMP), along with Toyota Group export suppliers and Toyota Special Economic Zone (TSEZ) locators, called for continued support from the administration of President Ferdinand Marcos Jr. during the 27th TSEZ Update Meeting with the Philippine Economic Zone Authority (PEZA).

TMP President Masando Hashimoto presented updates on the Philippine automotive industry and Toyota Group's domestic manufacturing and export operations, highlighting the role of government programs and industry collaboration in sustaining local production and trade amid softer market demand and changes in the automotive landscape.

Toyota Group companies maintain a significant presence in Philippine manufacturing, exports, investments and employment.

PEZA Director General Tereso Panga recognized these contributions, noting that Toyota's 13 export suppliers have generated more than P34 billion in cumulative investments and over 45,000 direct jobs. The TSEZ has five companies employing more than 7,000 Filipinos.

“We are also most grateful for the cumulative contributions of the Toyota Special Economic Zone, TMP, and Toyota suppliers in Santa Rosa [City, Laguna],” said Panga. “For this, we sincerely thank you for your significant contributions in helping accelerate both local and national economic development.”

Toyota Group export suppliers are projected to generate approximately $1.06 billion in export sales in 2026, a slight decline from $1.09 billion in 2025.

Amid softer demand and global trade uncertainties, the group continues its manufacturing and export operations in the Philippines while seeking measures to enhance the competitiveness of local manufacturers and suppliers.

Ready to participate in RACE

TMP and Toyota Group suppliers see opportunities to strengthen the local supply base and expand the participation of Philippine companies in automotive value chains as the industry evolves.

Programs under the Marcos administration supporting automotive manufacturing and electrification provide opportunities to encourage further investment, localization and capability development.

TMP and Toyota Group welcomed the Philippine government's “dual strategy” of strengthening the country's established capabilities in conventional vehicle manufacturing while developing new capabilities in electric vehicle and parts production.

For its part, TMP reiterated its readiness to participate in the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, pending the completion of the government's joint administrative order and implementing guidelines.

TMP intends to register the locally manufactured Tamaraw under the program.

The Electric Vehicle Incentive Strategy (EVIS) also presents opportunities for local suppliers to develop capabilities and participate in the shift toward electrified mobility. Panga expressed hope that Toyota Group suppliers would benefit from local opportunities generated by the program.

TMP also emphasized the need for stronger supplier matching and capability development to help Philippine companies meet automotive manufacturers' requirements for cost, quality and delivery, and expand their participation in regional and global value chains.

Panga outlined PEZA's efforts to connect economic zone locators with potential local suppliers by showcasing the products and services required by companies operating within the zones.

These efforts are complemented by a digital marketplace designed to identify local sourcing opportunities and connect economic zone enterprises with Philippine suppliers.

“Many companies are beginning to discover that, instead of sourcing certain processes from abroad, the capabilities they require may already be available here in the Philippines,” said Panga.

Strengthening Philippine auto industry

The meeting also covered operational concerns affecting Toyota Group companies and TSEZ locators, including customs processing, electricity costs, regulatory requirements and tax assessments.

TMP and Toyota Group raised the need for continued coordination with PEZA and relevant government agencies to address these concerns and support a competitive environment for manufacturing and investment.

TMP also emphasized that fulfilling the government's commitments under the Comprehensive Automotive Resurgence Strategy (CARS) Program is essential to ensuring a smooth transition to the “dual strategy” within a comprehensive automotive industry development framework.

Panga reaffirmed PEZA's support for the TSEZ community and the wider Toyota Group, including continued coordination with government partners to address outstanding industry concerns and support the group's operations.

“As Toyota and its suppliers continue to grow and evolve, PEZA will remain your partner in strengthening the automotive ecosystem and advancing the Philippines as a competitive manufacturing and investment destination,” said Panga.

TMP, TSEZ locators and Toyota Group suppliers reaffirmed their commitment to local manufacturing and exports while calling for continued government-industry collaboration to strengthen local suppliers, sustain the country's manufacturing base and position the Philippine automotive sector for emerging opportunities.