Toyota Motor Philippines Corp. (TMP) expects limited disruption to local vehicle supplies and fourth-quarter sales despite flooding in Thailand, a key production and export hub for several Toyota models sold in the Philippines.
TMP executive Sherwin Chua Lim said the company had yet to establish whether the flooding had affected production or shipments, but vehicle availability in the local market remained unaffected as of October.
“Right now, not yet, because it’s very recent,” Chua Lim said when asked about the potential impact on Philippine operations.
The company is awaiting details on the extent of possible supply disruptions, including the number of vehicles and specific models that could be affected, he said.
Thailand is an important source of Toyota vehicles for the Philippine market, including the Fortuner sport utility vehicle and Hilux pickup, making prolonged production or shipping delays a potential risk to local deliveries.
Chua Lim acknowledged that supply constraints could affect the company’s fourth-quarter sales targets, a concern as the final months of the year typically bring strong automotive demand.
“Of course, if the supply will be affected, it will affect our Q4 targets,” he said.
Still, TMP expects existing inventory and alternative models to help offset any shortfall, reducing the likelihood of a substantial impact on overall sales.
“We have other models that we have on stock that can replace those,” Chua Lim said.
“I don’t think it will be a big number that will affect the total Q4.”
The company’s outlook remains subject to developments in Thailand, with the potential impact depending on the severity of the flooding and any resulting disruption to vehicle production and logistics.
For now, TMP is not anticipating a significant hit to its fourth-quarter targets. However, the company has yet to quantify any potential supply losses, leaving the outlook dependent on further information from its Thai supply chain.
