GT Capital will continue to protect margin of its automotive business while being mindful of competition despite maintaining leadership in the market, according to the company’s chief financial officer Francis Suarez.
Toyota Motor Philippines (TMP), clinching a historic high in nine-month sales as of September, is on track to achieve a new all-time sales high this year, GT Capital said.
In a televised interview yesterday, Suarez said while GT Capital’s ultimate objective for TMP is to protect margins, “we have to be mindful of competition.”
“ These (are the) two factors we have to take into consideration,” said Suarez.
GT Capital said TMP achieved a 22-percent increase in consolidated revenues of P162.8 billion from January to September from 133.4 billion in the same period last year. TMP’s consolidated net income grew 159 percent to P10.9 billion in the first nine months of this year, from P4.2 billion in the previous year.
GT Capital said TMP’s record performance during the period was supported by the improving sales of its newly launched hybrid electric vehicle (HEV) models, along with the easing of supply chain issues that were felt the previous year. TMP introduced the all new Alphard HEV in August, and the new Hilux GR-Sport in September.
The company to date has 74 dealerships.
TMP remains the country’s most dominant automotive brand with a 47.1 percent overall market share for the first nine months of the year.
“TMP continues its growth trajectory with nine month sales already exceeding pre-COVID levels by 26 percent. The total vehicle market, on the other hand, has also finally breached comparable 2019 January to September sales volumes by 3 percent. The regularization of vehicle supply chains, the slew of new model introductions and, importantly, the renewal of auto consumer financing have all contributed to the sales resurgence this year,” said Atsuhiro Okamoto, TMP president.
GT Capital said Toyota is on track to achieve a new all-time sales high in 2023, beating its 183,908 unit record back in 2017. Growth is seen across all its model lines with sales of electrified vehicles experiencing significant gains. Sales of Toyota and Lexus electrified models increased by a strong 150 percent on a year-on-year basis, now contributing 2.7% to total TMP sales. Lexus is also sustaining its robust growth and continues to lead the luxury segment of the market. “The seasonally high demand for autos during the holiday season, the usual surge in year-end OFW remittances and an expected rise in consumer and government spending all point to a solid finish for this year,” Okamoto added.
According to Suarez, limited supply or waiting time for Toyota vehicles is on the high-end models such as the Alphard, Land Cruiser and Hi-Ace.
“For the more popular brands (like) the Vios, there’s still enough supply or adequate supply for them. In the case of the high-end models, there’s usually a waiting time. But what we’ve experienced recently is there has been more or less almost a normalization,” Suarez said. Irma Isip
