Toyota Philippines Sees Production Output Decline This Year Amid Soft Demand

MANILA, Philippines — Toyota Motor Philippines Corp. (TMP) expects its local vehicle production to decline this year due to soft demand. “It’s lower this year. (We expect it to be) close to 60,000 units,” Sherwin Chua-Lim, senior vice president at TMP, told reporters. He attributed the outlook to low demand. Last year, TMP’s vehicle output hit a record-high of 63,803 units. From January to August, TMP produced 38,221 units, down by 10 percent from 42,469 units in the same period last year. Of total production, Vios accounted for the largest share at 48 percent, or 18,321 units. The Tamaraw followed with a 33-percent share or 12,468 units. The Innova had a 19-percent share with 7,432 units. While TMP has registered lower year-on-year monthly production volumes since January, it showed an initial recovery in July, when output rose 18 percent to 6,550 units from 5,540 units in the same month last year. In August, TMP produced 4,970 units, up by 9.5 percent from 4,540 units in the same month in 2025. Despite the initial recovery, TMP said demand remains soft due to macroeconomic factors. High inflation has weighed on Filipinos’ purchasing activity. Inflation eased slightly to 6.1 percent in August from 6.2 percent in July. This brought average inflation from January to August to 5.2 percent, higher than the government’s two to four percent target. Rising fuel prices are also driving demand for electrified vehicles. TMP produces the Vios, Tamaraw and Innova at its plant in Santa Rosa, Laguna. In addition to its locally produced models, TMP also sells electrified models, which it imports. From January to August, TMP sold 133,300 units, nine percent lower than the 146,357 units in the same period last year. While total vehicle sales fell, the share of electrified vehicles rose to 11 percent as of end-August. TMP’s electrified vehicle sales, including Lexus models, reached 15,078 units as of end-August. Earlier, research and analysis firm BMI said it expects Philippine vehicle output to decline by nearly nine percent to 127,453 units this year from an estimated 139,606 units last year, citing weak demand and high production costs.