Toyota Motor Philippines (TMP) has indicated the potential to introduce additional electric vehicles (EVs) to the local market, while cautioning that the ongoing conflict in the Middle East could disrupt logistics and complicate rollout plans.

TMP Chairman Alfred Ty stated that EVs currently account for approximately 20% of the company's total sales volume, including both Toyota and Lexus models, with hybrids comprising the majority.

However, he noted that the conflict could affect supply chains and delay the introduction of additional models.

"Even before the war, there are plans for models to be introduced," he said on the sidelines of a forum marking the 70th anniversary of diplomatic relations between the Philippines and Japan. "As long as it is not disrupted. The extent to which the war will disrupt logistics and supply has yet to be determined."

Ty added that the Philippine unit and Toyota's headquarters in Japan are monitoring developments in the Middle East on a daily basis.

Outdated trade partnership

Another challenge facing the EV sector is the Japan-Philippines Economic Partnership Agreement (JPEPA), which, according to Ty, requires review to reflect the industry's transition towards smaller engines and electrified vehicles.

JPEPA came into effect in December 2008, making it the Philippines' first bilateral free trade agreement. He noted that the agreement was implemented at a time when smaller engines and electrification were not yet widespread.

"These are matters that both governments are expected to begin discussing," he stated.

Toyota's electrified vehicle sales have continued to grow. Ty stated that the company continues to focus on electrification while also supporting other vehicle segments.

"We are moving towards electrification," he said. "However, diesel models remain relevant, particularly for access in provincial areas."

When asked about the possibility of establishing EV manufacturing in the Philippines, he stated that sufficient scale would be required before such a move becomes viable.

"It is a question of scale," he said. "Adequate volume levels are necessary for manufacturing to be economically viable."