Toyota Motor Philippines seeks stronger state support as 2026 exports soften

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Toyota Philippines export outlook

Highlights

Toyota Motor Philippines forecasts export sales of $1.06 billion in 2026, down from $1.09 billion in 2025, citing weaker global demand and trade uncertainty.
The company calls for stronger government support and urges settlement of the P5.16-billion Comprehensive Automotive Resurgence Strategy obligation while expressing interest in the P9-billion RACE program incentives.
Thirteen Toyota export suppliers have generated over P34 billion in investments and 45,000 direct jobs, highlighting local supply chain significance amid tougher export conditions.

Export outlook and policy requests

As reported by BusinessWorld Online, Toyota Motor Philippines Corp. expects export sales to reach $1.06 billion this year, down slightly from $1.09 billion in 2025, as softer demand and global trade uncertainty weigh on the automotive industry. In a Thursday statement, the company says it continues its manufacturing and export operations in the Philippines while seeking measures that would improve the competitiveness of local manufacturers and suppliers.

The company renews its call for stronger government support for local vehicle manufacturing, saying additional backing would help sustain production and exports. Toyota Motor Philippines also reiterates its readiness to join the government’s Revitalizing the Automotive Industry for Competitiveness Enhancement, or RACE, program, which offers a P9-billion fiscal incentive package to support local production of internal combustion engine vehicles, although implementing rules have yet to be issued.

Toyota Motor Philippines is also urging the government to fulfill commitments under the Comprehensive Automotive Resurgence Strategy, or CARS, program to help the transition toward successor manufacturing initiatives such as RACE. Trade Secretary Maria Cristina A. Roque earlier says the government has yet to settle its P5.16-billion obligation to participants in the CARS program, including the company.

Manufacturing footprint and industry impact

Toyota Motor Philippines assembles the Vios, Innova and Tamaraw at its 82-hectare Toyota Special Economic Zone in Sta. Rosa, Laguna. The company says Philippine suppliers still have room to expand their role in the automotive value chain, even as export conditions become more challenging.

Citing Philippine Economic Zone Authority Director-General Tereso O. Panga, the company says its 13 export suppliers have generated more than P34 billion in cumulative investments and created over 45,000 direct jobs. The economic zone also hosts five companies employing more than 7,000 workers, underscoring the broader employment and investment stakes tied to support for domestic vehicle manufacturing.

Toyota Motor Philippines remains the country’s top-selling automotive brand as of end-September despite an 8.1% decline in sales during the period. That market position suggests the company remains central to the Philippines' auto manufacturing base, even as demand and trade conditions stay under pressure.

Our earlier article on the Philippines’ expanded access to Malaysia’s halal import market explained how PhilUlama’s recognition by Malaysia’s JAKIM broadened the list of Philippine-based certification bodies accepted for exports. We noted that adding another recognized certifier can improve exporters’ service options and strengthen the country’s wider push to grow trade, investment, and related industries beyond simple compliance requirements.

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