Copyright FOURIN, Inc. 2022
Toyota Motor’s Business Activities in ASEAN in YTD June 2021
Toyota’s vehicle sales (including the Lexus brand) in ASEAN (six countries) in 2020 fell 34.8% year-on-year to 650,000 units due to the impact of the spread of the new coronavirus infection. Toyota witnessed significant decline in sales in its two largest ASEAN markets. The largest decrease in sales was in Indonesia, dropping 51.3% to 162,000 units. In Indonesia, due to the lockdown from April 2020, Toyota’s automobile sales in May fell 97.5% from the same month of the previous year to 716 units. Its market share for the full year of 2020 decreased 1.8 pp from the previous year to 30.5%. In Thailand Toyota’s sales went down 26.5% to 244,000 units and its market share dropped 2.1 pp to 30.8% in 2020. Meanwhile, Toyota expanded its electric vehicle lineup in 2020. Following the introduction of the Corolla Cross HEV in ASEAN countries in July, Toyota released the first BEV (Lexus UX300e) in Thailand and Indonesia in November.
In the first half of 2021, automobile sales in ASEAN (six countries) increased 44.0% year-on-year to 376,000 units, but decreased 21.6% compared to the same period of 2019. Since the beginning of 2021, the pandemic has re-expanded in ASEAN. As a result, following the suspension of production and sales activities in Malaysia from June to mid-August 2021, factories in Thailand and the Philippines have been also suspended one after another from July. In Thailand, three Toyota factories were shut down in July due to a shortage of parts following the suspension of production by suppliers. All three factories resumed operations by the end of August, but the future remains uncertain. In Thailand, Toyota’s sales target of 280,000-300,000 units set at the beginning of the year was revised downward to 260,000 units at the end of July 2021.
Toyota Motor: Recent Business Developments in ASEAN (2021)
Suspending production at three factories
・In July 2021, Toyota shut down three factories in Thailand one after another after the 20th due to the delay in parts supply.
- Toyota shut down the Ban Pho plant (Chachoengsao province) on July 20, 2021, and the Samrong plant (Samutprakarn province) and Gateway plant (Chachoengsao province) on the morning of the 21st. Toyota considered resuming production after the 28th, but the parts supply situation did not improve so the suspension was extended beyond July 29th. The impact of the production cut by July 23 was estimated to be in the thousands.
- On July 19, 2021, a Thai supplier (Chachoengsao province) shut down due to the outbreak of the new coronavirus at the facility. As a result, Toyota's factory, which was unable to procure parts, also shut down. The supplier’s factory received a 14- day closure order from July 21st. Production resumed after that, but the operating rate was reduced to 25% until mid-August.
- On August 9, 2021, Toyota reopened its Samrong and Ban Pho plants thanks to improved parts supply. The Gateway plant remained shut down. The scale of production cuts for the 10 days (excluding scheduled holidays) from July 21, when all three plants were shut down, to reopening is estimated to be about 20,000 units.
- On August 26, 2021, one-shift production at the Gateway plant began.
- On August 17, 2021, the Thai government made a cabinet decision to strengthen infection control measures at factories. Automobile factories with more than 500 employees need to perform PCR tests on all employees and secure accommodations that can accommodate 5% of employees.
2021 production outlook
・The full-year 2021 production forecast for Thailand is 580,000 units, up 31.0% from the previous year (as of the end of July 2021, revised upward from the initial forecast of 527,000 units).
- The upward revision takes into consideration of the suspension of production in Thailand after July 20, 2021. The reason for the upward revision seems to be the strong exports to the Middle East and Oceania. Toyota forecasts full-year 2021 exports to increase to 322,000 units, up 50% year-on-year.
- On August 19, 2021, Toyota announced a plan to reduce global production in September 2021 by 40% (360,000 units) from the initial plan of 900,000 units. Of which, the scale of production cuts in Asia is 8,000 units.
2021 sales target
・The full-year 2021 sales target in Thailand is 260,000 units, up 6.4% from the previous year (announced on July 30, 2021).
- The annual forecast announced in January 2021 (up 15-23% year-on-year to 280,000-300,000 units) has been revised downward.
- The market share target is 32.5%, up 1.7 percentage points from the previous year. Toyota forecasts that the total Thai automobile market will increase 1.0% year-on-year to 800,000 units (Announced on July 30, 2021. It has been revised downward from the initial forecast of 850,000 to 900,000 units).
Expansion of the GR series’ lineup
・In August 2021, the Hilux and Fortuner GR Sport models were released.
- GR (GAZOO Racing) is a Toyota sports car brand. It has a lineup of products that feeds back the technology of motor sports activities to regular vehicles. GR Sport is a sports conversion line created by GR.
- The Hilux Revo GR Sport is the fourth GR model in Thailand. This is the first time that the GR series includes a pickup truck. Local engineers were involved in the development. The selling price is 1.29 million THB of the 4WD and 889,000 THB of the 2WD.
- The Fortuner GR Sport uses a new monotube shock absorber with excellent responsiveness to achieve driving like a sports car. It is sold for 1.87 million THB.
Starting EV smart mobility project to support tourism
・In April 2021, Toyota Astra Motor (TAM) announced that it would start a project to provide electric vehicles for tourism in Bali, Indonesia.
- TAM will provide 20 ultra-compact EV Coms, 5 C + Pods, and 5 PHEV Prius PHVs. The service period is planned to be 2 years.
Launching the Raize
・On April 30, 2021, the small SUV Raize was released.
- The model is available in the following grades: 1.0T G CVT, 1.0T G M / T, 1.2G CVT, 1.2G M / T, 1.0T GR Sport CVT, 1.0T GR Sport CVT TSS. Unlike the Japanese specifications, models are available with MT and 1.2L engine. The 1.2 G CVT and 1.2 G M / T equipped with a 1.2 liter engine were originally planned to be launched in the latter half of 2021, but due to many requests, their introduction time were brought forward.
- Toyota received orders for 1,269 units by May 7th and for 6,179 units by June 14th. The composition ratio of orders by region was Jakarta 24%, West Java 19%, East Java 11% was of May 7, 2021. By grade, the GR Sport accounted for more than 80% (1.0T GR Sport CVT 57.4% and 1.0T GR Sport CVT TSS 25.7%, as of June 14, 2021).
- It is manufactured by Astra Daihatsu Motor's Karawang plant (Karawang province) in Indonesia.
Launching minor change versions of the Alphard and Vellfire
・In June 2021, Toyota announced some improvements to the Alphard and Vellfire.
- The models are equipped with preventive safety function Toyota Safety Sense (TSS). The operating range of adaptive cruise control has been expanded to improve safety performance.
- The Vellfire’s interior has been redesigned to look sportier.
Expansion of the GR series’ lineup
・In August 2021, five models of the GR series were released.
- One of the models is the Veloz GR Limited. The Veloz is the Avanza's high-end model. A limited quantity of 3,700 units will be sold only in Indonesia. The remaining four models are GR Sport models (Rush GR Sport, Fortuner GR Sport, Yaris GR Sport, Agya GR Sport).
- The GR lineup consists of seven models in Indonesia, including the GR Supra (released in 2019) and the Raize GR Sport (released in 2021). Sales of the GR Yaris, introduced in April 2021, were limited to 126 units. It could no longer be purchased as of August 2021. However, it is under consideration to import 100- 200 units annually for sale.
Production and sales suspended due to the new coronavirus infection
・On June 1, 2021, Toyota suspended production and sales in Malaysia in response to the Malaysian government's activity restriction order due to the spread of the new corona infection.
- Some service centers continued to operate in accordance with state regulations for emergency and breakdown response for car owners. 24/7 support is available by calling the helpline.
- Production and sales resumed on August 16, 2021, when restrictions were relaxed.
- Toyota has been observing Malaysia’s Standard Operating Procedures (SOP) and guidelines after resuming activities. In addition to measuring body temperature, disinfecting hands and using face masks, as well as performing regular hygiene management of the facility, advance reservation is requested from customers visiting the service center.
- Toyota's Shah Alam plant (Selangor state), Bukit Raja plant (Selangor state) and related plants have utilization rates specified according to employee vaccination rates. An employee vaccination rate of 80% or higher is required for 100% operation. Most employees were vaccinated as of August 19, 2021.
Investing in mass production of HEVs
・On July 7, 2021, Toyota announced to invest in mass production of HEVs in Malaysia.
- It is part of the company’s effort towards carbon neutrality by 2050. 270 million MYR will be invested in the expansion of production facilities for the introduction of new-generation HEVs. Expanding HEV production and sales will reduce CO2 emissions in Malaysia throughout the automotive ecosystem.
Launching KINTO ONE
・On January 18, 2021, the automobile subscription service KINTO ONE was launched.
- KINTO ONE is a service that allows custimers to use new Toyota and Lexus cars for a fixed monthly fee (including expenses). The contract period is three or five years. The vehicle is returned to the service provider after the contract period ends.
- The KINTO ONE’s lineup includes the Vios, Yaris, Corolla, Innova, Fortuner and other models (as of January 2021).
Launching the Corolla Cross
・On March 25, 2021, the Corolla Cross was released.
- The powertrain combines a 1.8L gasoline engine and a 7-speed CVT.
- The model is available in two grades, 1.8V and 1.8G for an entry price of 134,000 MYR and 128,000 MYR respectively (including tax).
- Initially, the vehicle is imported from Thailand in CBU form. Local assembly is scheduled to begin in Malaysia by the end of 2021.
Launching the fully-redesigned Harrier
・On April 8, 2021, the fully-redesigned Harrier (4th generation) was released.
- It is built on the TNGA (GA-K) platform and powered by a 2.0L gasoline engine. Its entry price is 250,000 MYR.
- Production is carried out by the Okazaki Plant in Japan.
Factory operation suspended due the new coronavirus infection
・On August 6, 2021, Toyota shut down its Santa Rosa plant (Laguna province). The impact of the reduction in production was about 200 units per day.
- The reason for the suspension of operations was the community isolation measures implemented by the Philippine government against the new coronavirus. On August 6, 2021, the factory was unable to operate due to the application of ECQ (Enhanced Community Quarantine), which is the strictest of the four stages, in Laguna province where the factory is located.
- Toyota resumed factory operations on August 23, at the same level as before the shutdown, as the quarantine in Laguna was eased from ECQ to MECQ (Modified Enhanced Community Quarantine) on August 21, 2021.
Collecting deposits in response to provisional safeguard measures
・In March 2021, Toyota began collecting deposits from buyers of models subject to the provisional safeguard measures.
- In came as a response to the Department of Trade and Industry (DTI)’s decision to impose provisional safeguard duties on imported passenger cars and light commercial vehicles to protect the domestic industry. From February 1, 2021, the safeguard duties have amounted to 70,000 PHP per unit for imported passenger cars and 110,000 PHP per unit for light commercial vehicles.
- A total of 14 Toyota models was subject to the provisional safeguard measures.
- On August 6, 2021, DTI dismissed the safeguard measures.
Expansion of the GR series’ lineup
・On March 15, 2021, the GR series’ Vios GR-S was released.
- The Vios GR-S is the first GR-S model sold in the Philippines. It is made in the Philippines.
・On August 14, 2021, the GR Yaris was released.
Supplying 150 units to taxi company Ogre Transport
・In March 2021, Toyota handed over 150 Toyota vehicles (Innova 100 units, HiAce 50 units) to taxi company Ogre Transport (Cebu) as part of the Philippine government's public transport modernization project.
Providing fleet management service
・On July 16, 2021, Toyota began offering the Fleet Management Service (FMS).
- FMS is a service that manages the entire vehicle life cycle from purchase to disposal, improving the productivity of fleet operation. It is based on the GPS system designed exclusively for Toyota vehicles introduced in early 2021. Functions included are vehicle management with transfer of ownership, driver training, maintenance and reservation scheduling.
New vehicle distribution center scheduled to start operation
・A new vehicle distribution center near the port of Batangas is scheduled to start operation in the fourth quarter of 2021.
- It was scheduled to start operation in 2020, but it was postponed due to the impact of the new coronavirus.
- The functions of the vehicle distribution center include vehicle storage and pre-shipment inspection. It will also handle the storage and inspection of imported vehicles.
- Site area of the new distribution center is 320,000 m2. It is invested for 4.5 billion PHP and can store 4,500 vehicles.
Providing support to the automobile supporting industry
・On May 17, 2021, Toyota signed a memorandum of understanding with Vietnam’s Ministry of Industry and Trade (MOIT) regarding the support of Vietnam’s automobile supporting industry.
- Vietnam has the advantage of low labor cost, but faces two major issues which are limited production capacity and lack of high-quality materials. Toyota aims to support the growth of Vietnamese parts manufacturers and increase the local procurement rate in cooperation with the Ministry of Commerce and Industry of Vietnam.
Postponing the start of local production
・In February 2021, launch of the local production facility was postponed.
- As of August 2021, the production start date was still undecided (under consideration).
- Toyota established Toyota Myanmar (TMY) in June 2019, expecting that Myanmar’s automobile market will steadily expand in the future. The automaker constructed a new factory in the Thilawa Special Economic Zone in southern Yangon. Local production of the Hilux was scheduled to begin in February 2021, but it was postponed due to the coup d'etat by the Myanmar military on February 1, 2021.
- The plant was invested for about 52.6 million USD. It has an annual production capacity of 2,500 units and provides work for about 130 people.
(Created using Toyota Motor’s PR materials and various media sources)