MANILA, Philippines — Toyota Group’s exports reached $805 million, 6.39 percent lower than its 2010 exports of $860 million as production slowed down following the Japan earthquake and Thai flooding. The company has yet to set its exports target for 2012.

Toyota Auto Parts Inc. (TAPI), the group’s export unit, is producing transmissions through its global network.

Last year, the Japanese car giant has revealed plans of further localizing its auto parts and components requirements and strongly urged government to come up with measures to win Japanese auto parts manufacturers, who are planning to diversify its production site outside of Japan, to locate in the Philippines.

At that time, TMP president Michinobu Sugata raised hopes that government would include a program for automotive parts and components manufacturing in the Motor Vehicle Development Program.

Sugata pointed out the right timing for the government to come up with an auto parts manufacturing program because the strong yen and the calamities that hit Japan are forcing Japanese firms to review their supply chain.

“We need some measures to attract them,” he said.

“We need something because this is a very good chance for them to relocate because they cannot survive this high foreign exchange rate,” he added.

The Toyota Group is composed of automotive parts makers performing strategic roles in the production and exports of automotive products to different parts of the globe.

Sugata even said they are planning to increase the local content for the next generation Vios. At present, the local content of its two locally-assembled models Vios and Innova is only between 20 to 25 percent.

“We are planning to at least hit 40 percent local content,” he said.

He pointed out that increasing the local content would redound to lower cost to car assemblers in the country.

In addition, Sugata said they are going to invite more automotive suppliers to relocate here because the political situation in the country has been very stable. (BCM)