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Top representatives from the Philippine Economic Zone Authority (PEZA), Toyota Motor Philippines Corporation (TMP), Toyota Special Economic Zone (TSEZ) Locators, and Toyota Group Export Suppliers convened for the 26th TSEZ Update Meeting in Parañaque City.
Toyota Motor Philippines Corporation (TMP), in collaboration with prominent members of the Toyota Group export suppliers, recently presented a comprehensive report to the Philippine Economic Zone Authority (PEZA) during the 26th Toyota Special Economic Zone (TSEZ) Update Meeting held in June 2025 in Parañaque City.
TMP President Masando Hashimoto reported that Toyota Group export suppliers contributed an impressive USD 1.2 billion in export revenues in 2024, maintaining a 30% share of the total Philippine exports of Original Equipment Manufacturer (OEM) parts and components. This underscores the vital role of Toyota’s supply chain in the country’s export landscape.
While the performance remains steady, the Group acknowledged the ongoing challenges faced in international markets. Some exporters expressed concerns over the potential impact of proposed reciprocal tariffs by the United States (US), which could dampen export demand and introduce complexities in long-term planning.
In photo (front, from left) are Toyota Special Economic Zone (TSEZ) Manager Arlene Grace Roldan, PEZA Deputy Director General for Operations Vivian Santos, PEZA Director General Tereso Panga, TMP President Masando Hashimoto, TMP Vice Chairman and Treasurer Dr. David Go, and TMP Executive Vice President for Manufacturing with TSEZ Locators and Toyota Group Export Suppliers (back)
PEZA Director General Tereso Panga assured stakeholders that the impact of US tariffs on the Philippines is expected to be minimal, given the country’s limited export exposure to the US market.
“In the case of the Philippines, since we are not a major exporter to the US, we will be among those least affected by the reciprocal tariffs. Assuming the tariffs announced earlier are maintained, this situation could even be favorable for us, as our tariffs are comparatively lower than those of other ASEAN economies,” Panga explained.
Domestic Market Growth and Production Milestones
Hashimoto highlighted the domestic automotive industry’s resilience, noting an 8% growth in sales with a total of 474,000 vehicles sold in 2024. TMP played a pivotal role in this success, capturing a 46% market share with an all-time high of 218,000 units sold.
Furthermore, Hashimoto announced a significant production milestone for TMP with the successful launch of its third Completely Knocked Down (CKD) model — the Next Generation Tamaraw. This model symbolizes TMP’s commitment to local manufacturing and industry innovation.
TMP line team members perform quality inspection of the Next Generation Tamaraw
Strategic Plans and Industry Development
During the meeting, TMP disclosed its plans to incorporate the Tamaraw model into the Revitalizing Automotive Industry for Competitiveness Enhancement (RACE) Program. The company is currently awaiting the issuance of a Joint Administrative Order (JAO) from the Department of Trade and Industry, the Department of Finance, and the Department of Budget and Management, which will delineate the rules and guidelines for participation.
The Toyota Supplier Network expressed strong support for the RACE initiative, viewing it as a crucial catalyst for parts localization and the broader industry growth. This aligns with the gains achieved through the previous Comprehensive Automotive Resurgence Strategy (CARS) Program, which laid the foundation for enhanced local capabilities.
Economic Impact and Investments
TMP reported that the local production of the Tamaraw has significantly bolstered the supply chain ecosystem, engaging 44 Tier 1 suppliers and integrating 14 Tier 2 suppliers. The company’s investments in this project amount to PHP 5.5 billion. Additionally, the Toyota Supplier Network has announced plans to invest PHP 500 million to expand plant capacity, anticipating strong market demand for this light commercial vehicle.
TMP line team members conduct final inspection of the all-new Next Generation Tamaraw at the TMP Santa Rosa Manufacturing Plant
Supporting the “Tatak Pinoy” Strategy
PEZA DG Panga acknowledged TMP’s vital role in supporting the Philippine government’s “Tatak Pinoy” strategy through the success of the Toyota Tamaraw. He emphasized that such initiatives are crucial for advancing automotive manufacturing and empowering local industries, fostering sustainable economic growth.