Philippines growing as a hub for Toyota vehicle and parts distribution

Toyota assembles three vehicles at its 82-hectare manufacturing plant in the Philippines – the Vios and Innova passenger vehicles, and the Tamaraw light commercial vehicle. The vehicles are assembled in the Santa Rosa special economic zone (SEZ) from complete knockdown kits (CKDs) imported to the country and the plant has an annual capacity of 60,000 units. This local production is supported by a wide range of imported models. Last year Toyota sold almost 229,500 vehicles in the country and in the first six months of this year sales stood at more than 111,000.  

The Philippines has become a hub for local sales and exports for Toyota in the region covered by the Association of Southeast Asian Nations (ASEAN). TMP sold almost 230,000 units last year and the Philippines has the biggest local market share among Toyota affiliates in the ASEAN region, equal to 49% as of the end of September 2026. Year-to-date, TMP ranks ninth in Toyota’s top ten biggest markets globally, up from tenth in 2025. 

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At Toyota Motor Corporation’s (TMC) Tokyo Business Roundtable held in May this year, Masahiko Maeda, CEO of Toyota’s Asia region, said Toyota recognised the Philippines as a long-term partner for the industrial development and cooperation in the ASEAN region. He said TMC encouraged the Philippine government to promote CKD-based local manufacturing across all technologies to support businesses, deepen localisation and strengthen local suppliers. 

Through the Philippine government’s Comprehensive Automotive Resurgence Strategy (CARS) programme, which is designed to revitalise local vehicle manufacturing and turn the country into a regional automotive hub, TMP has developed new in-house production capabilities for Vios production at the Laguna assembly facility. They include advanced manufacturing technologies in press, plastic injection and roller hemming for resin and press parts. The programme has enabled technical agreements between local parts makers and foreign technical partners, accelerating technology transfer. According to TMP, the programme has delivered an estimated $1.22 billion in foreign exchange savings through local sourcing, reducing import dependence and supporting the country’s foreign reserves.  

Parts distribution 

From the Santa Rosa SEZ in Laguna, Toyota also distributes service parts to 75 authorised dealers and service centres across the country through the Toyota Motor Philippines Logistics unit. That includes Toyota Genuine Parts and T-OPT Aftermarket Parts. The latter is a secondary tier supplier of alternative parts targeted at out-of-warranty models, such as the Vios, Wigo, Avanza, Innova and Hiace. These are distributed through independent service outlets and partner networks (such as Motech and Autoquix) alongside traditional channels. Revenue from domestic service parts hit around $148.8 million last year. 

TMP said the main challenges for parts distribution around the Philippines were the topography of an archipelagic country, the high cost driven by increasing fuel prices and frequent typhoons that impact land and sea transport. To cope with those headwinds TMP said it had built capacity and knowledge sharing for inter-island transport service providers, ensuring that systems and procedures meet Toyota standards. 

At the same time, revenue from exports of inbound and service parts through TMP Logistics was around $172 million. Toyota Aisin Philippines produces and exports automotive transmissions and in 2025. It made 17,000 for domestic sales last year and exported 219,000 units to markets abroad including Indonesia, Malaysia, Thailand and Vietnam in the ASEAN region, as well as Argentina, India, Pakistan and South Africa among other global destinations.  

TMP said it expected a slight decline in 2026 because of the impact of the crisis in the Middle East.