Toyota Motor Corp. is planning to expand its local production capacity by as much as 20% in the next two years to take advantage of new government incentives.
Toyota Motor Philippines Corp., a joint venture with local conglomerate GT Capital Holdings, Inc. (GTCAP) , is looking at increasing production capacity by 10%-20% from the current 40,000 a year.
The Philippines last week launched a scheme that will provide incentives worth $600 million over six years to its tiny auto industry in a bid to raise shrinking output and catch up with regional rivals.
Under the government scheme, a car firm can get incentives for that model if the model has a track record of competitiveness, plans to make new investment in assembly and targets a production volume of at least 200,000 over six years, among other requirements.
Toyota Philippines would take advantage of the incentives through the Vios as the monthly production of 2,000 was expected to increase to 2,500, adding that construction of a larger assembly plant could start as soon as late this year.