Revitalizing the local automotive industry through local manufacturing and technology advancements reflects the strategic vision of the administration of President Ferdinand Marcos Jr. for the sector.
The President is giving the automotive industry a boost to help attract new investments and develop the country as a regional automotive manufacturing hub. In May 2023, Malacañang approved the five-year extension of the Comprehensive Automotive Resurgence Strategy (CARS) program.
“Under our Strategic Investment Priority Plan, we are offering generous incentives for a wide range of activities, such as manufacturing, for innovation, infrastructure, and logistics, renewable energy, research and development on advanced digital production technologies, green ecosystems, health, defense, industrial value chain, and food security. Under manufacturing, for instance, the Philippines aims to become a regional hub for vehicle and parts manufacturing in Asia, supported by a strong domestic supplier base,” President Marcos Jr. said.
Through the CARS program, the government offers fiscal support to participants in exchange for investments for the production of at least 200,000 units of their enrolled vehicle model within six years.
One of the vehicles of Toyota Motor Philippines Corporation (TMP) is among those enrolled in the program. Apart from this, TMP also recently unveiled the next-generation Toyota Tamaraw at the Toyota Sta. Rosa Special Economic Zone in Laguna.
Philippine Economic Zone Authority (PEZA) Director General Tereso Panga said PEZA supports Toyota and the whole automotive industry. “In PEZA, we are ready to support Toyota every step of the way. Our economic zones are primed for the expansion of parts manufacturing, ensuring that the Philippines continues its evolution into a more competitive hub,” said Director General Panga.
TMP has invested ₱1.1 billion for a new 1.5-hectare conversion facility, bringing their total committed investment to revive Tamaraw production to ₱5.5 billion. In 2023 alone, Toyota Group exporters, all of which are based in PEZA zones, have likewise generated ₱665 million in export revenues.
This integrated vehicle production and conversion process—the first setup of its kind in the Philippines—is expected to deliver about 20,000 units of Tamaraw at the highest cost efficiency and translate to competitive vehicle prices accessible to Filipinos.
The new Tamaraw vehicles will be the third locally produced model by Toyota in its 78-hectare ecozone in Laguna. This initiative is expected to create over 500 direct jobs, support 15,090 spillover employment opportunities, and strengthen the automotive value chain.
According to TMP, the return of the Tamaraw, which is one of the iconic vehicles in the Philippines, showcases their confidence in the talent of the Filipino workforce and the quality of Philippine-made products that can compete in the global automotive market.
“It is a testament to our commitment to the nation, building our belief in Filipino craftsmanship, and our continuing mission to create ever-better cars for the Philippines,” TMP Chairman Alfred Ty said.
“I am incredibly proud of the highly skilled Toyota team members who work passionately to produce world-class vehicles here in the Philippines,” he added.
For his part, Toyota Motor Asia Region Deputy Chief Executive Officer Hao Quoc Tien said, “The sustained support by the Philippine government for the vehicle and parts manufacturing industry also reinforces the country’s role as an essential part of our Asia business.”
Originally dubbed “Hari ng Kalsada,” the Tamaraw served as a workhorse for many Filipino businesses beginning in the 80s until it ceased production in 2005.
The launch of the new Toyota Tamaraw is a significant moment in the history of the automotive industry as it revives a classic model that has been a staple in local transportation for decades. The Tamaraw is expected to cater to both commercial and public transportation needs, aligned with the government’s push for more locally manufactured vehicles.
On the other hand, President Marcos Jr. also noted the need to recognize TMP’s contributions to the country.
“We have to recognize the help that it has given—that this plant such as this has given us and our people. Makikita mo ang magandang—yung mga tao natin, our Filipino employees who have come to work with Toyota have been—are very highly trained, are also extremely steeped in the Japanese culture of production, which is very important because they have shown themselves to be one of the most, if not the most efficient when it comes to manufacturing and high-volume production of products,” the President stated.
The new Tamaraw is expected to meet consumers’ needs with its convertible body features: drop-side, utility van, and aluminum van with gas and diesel engine options. It also features advanced technology to ensure safety, quality, cost efficiency, and environmental sustainability.
The next-generation Tamaraw is expected to be available in the market by January 2025, with a starting price capped below ₱800,000.
Moving forward, the Marcos administration is also looking at enhancing the local vehicle production capabilities of electric vehicles, indicating a strategic direction toward modernizing the automotive landscape in the country. President Marcos Jr. has ordered government agencies to expedite the implementation of action plans and strategies to develop the EV industry in the country.
With initiatives such as these, President Marcos Jr. envisions the Philippines becoming a global leader in automotive manufacturing, creating new opportunities for growth, innovation, and employment in the sector.”
