[MANILA] Toyota Motor Corp plans to invest 3.22 billion pesos (S$95 million) in its Philippine division to increase local output and qualify for a new tax incentive, the government of the Southeast Asian nation said in a statement on Wednesday.
The Japanese automaker will build 230,000 Vios subcompact sedans under a US$600 million six-year incentive program that the government introduced last year to boost automotive output and raise regional competitiveness, the Board of Investments said.
Rommel Gutierrez, first vice-president for Government Affairs at Toyota Motor Philippines, confirmed the automaker had plans to invest, but declined to elaborate ahead of a company statement scheduled for Thursday.
Toyota's investment would follow a similar move by compatriot Mitsubishi Motors Corp, which in February said it would invest US$91 million to build 200,000 Mirage and Mirage G4 cars starting in 2017.
Toyota Motor Philippines, a joint venture with local conglomerate GT Capital Holdings Inc, already builds Vios and Innova cars at a factory south of the capital Manila. The automaker is the Philippines' biggest by sales.
The Board of Investments also said it expects auto parts makers working with Toyota and Mitsubishi to generate more than US$388 million in fresh investment due to the government's Comprehensive Automotive Resurgence Strategy.