Toyota Motor plans to invest 3.22 billion pesos ($70 million) in its Philippine department to boost local output and get approved for a new tax incentive, the federal government of the Southeast Asian nation stated on Wednesday.
The Japanese automaker will develop 230,000 Vios subcompact sedans under a $600 million six-year incentive program that the federal government introduced last year to increase automotive output and raise local competitiveness, the Board of Investments stated.
Toyota’s financial investment would follow a similar relocation by compatriot Mitsubishi Motors Corp, which in February stated it would invest $91 million to construct 200,000 Mirage and Mirage G4 automobiles from 2017.
Toyota Motor Philippines, a joint endeavor with regional corporation GT Capital Holdings Inc, currently constructs Vios and Innova vehicles at a factory south of the capital Manila. The automaker is the Philippines’ biggest when it comes to sales.
The Board of Investments likewise stated it anticipates auto parts makers dealing with Toyota and Mitsubishi to create over $388 million in fresh investment because of the federal government’s Comprehensive Automotive Resurgence Strategy.
