The Pandemic and Economic Slow Down Has Hit Toyota Motor PH Really Hard

Despite the on-going global pandemic, Toyota Motor Corporation’s global sales are recovering at a faster than expected rate. Global sales last August 2020, including that of Lexus, were down just 10.6 percent compared to the same period in 2019.

Carrying the torch for the Japanese carmaker is China which has actually grown 27.2 percent year-on-year due to the strong sales of the Corolla (Levin in China) as well as the Lexus ES. As a response, production levels are up 15 percent year-on-year.

Closer to home, Toyota’s sales across Asian markets are up 3.5 percent, showing that the global appetite for automobiles is slowly recovering. That said, of all the markets in the region, only three showed significant growth: China (up 27.2 percent), Taiwan (up 61.2 percent), and Pakistan (up 38.2 percent).

Due to the slowing economy and slumping consumer sentiment in conjunction with the effects of the pandemic, sales in Indonesia is down 60.4 percent. The Philippines follows with a contraction of 38.5 percent.

Despite the slew of new vehicle offerings from Toyota Motor Philippines including the Wigo, Corolla Cross, Vios, and Hilux, sales were limited to just 8,044 units last month. Cumulatively, January to August 2020 sales remain down 47.8 percent or 52,525 units sold.

In terms of production, Toyota Motor Philippines has so far produced 2,950 Innova MPVs and Vios sub-compact sedans at its Sta. Rosa, Laguna plant. This figure is down 41.7 percent compared to August 2019. Year-to-date isn’t fairing any better—at 17,239 units produced, it’s 50.1 percent down. This makes the Philippines the second worst hit production hub in Asia, second only to India (down 64.2 percent).

Still, there’s a silver lining in all of this. According to Toyota Motor Philippines, demand for the updated Vios is slowly accumulating and they’re committed to running their plant at its regular two-shift schedule until the end of October. Moreover, they see continuous sales recovery with the introduction of the Hilux which is projected to sell 5,000 units until the end of 2020.

Source: Car Guides PH