Toyota Motor Philippines Corp. of the Ty family is set to make a big leap in the Year of the Rabbit, including smashing its all-time high sales record set six years ago.
In a research report by Maybank Securities, TMP’s sales are expected to rise by 10 percent to 192,948 units this year from 174,106 in 2022. This will eclipse TMP’s all-time high sales of 183,908 in 2017.
Maybank said TMP would generate P18 billion in income in 2023, up by 22 percent from the estimated income of P14.8 billion in 2022.
MayBank said TMP could benefit from the government’s ongoing review to extend the Comprehensive Automotive Resurgence Strategy (CARS) which gives the Japanese car brand incentives to build up to 200,000 Vios models with 42 percent of components sourced locally.
TMP started assembling the Vios in the Philippines in 2018 and has so far rolled out roughly 135,000 units.
TMP could also get a lift from the better-than-expected growth in parent firm GT Capital Holdings ‘ used car business.
“TMP’s auto sales outperformed (relative to the industry) in 2022, despite elevated oil prices, record high inflation rates, rising interest rates and a weak Philippine peso. We think this sets GTCAP up for an even
stronger 2023, during which inflation, oil prices and the peso are all expected to stabilize,” said Maybank.
TMP and sister firm Metropolitan Bank and Trust Co., the country’s second-largest bank, account for 80 percent of GTCAP’s earnings.