Toyota Motor Corporation and Aisin Seiki Co., Ltd. have agreed to increase Aisin’s ownership in Toyota Autoparts Philippines, Inc. (TAP) to 61%, making it an Aisin subsidiary. This move aims to bolster competitiveness in the manual transmission (MT) market in the Philippines. The company will be renamed Toyota Aisin Philippines, Inc., with Aisin leading its operations.
This strategic decision builds upon a 2014 agreement between Toyota and Aisin to consolidate their MT operations for greater efficiency. By January 2017, research, development, and production of MTs for mass-produced vehicles in Japan were transferred to Aisin AI Co., Ltd., a wholly owned subsidiary of Aisin. Aisin’s initial investment in TAP in 2016 marked its entry into the overseas MT business.
As an Aisin subsidiary, Toyota Aisin Philippines, Inc. will leverage Aisin’s expertise and diverse transmission portfolio to optimize production efficiency. Aisin plans to shift some of its MT production from Aisin AI to TAP and invest approximately 1.2 billion PHP in new automatic transmission (AT) component production lines. This investment will capitalize on TAP’s 26 years of experience and established technologies in the Philippines.
TAP has a proven track record of producing high-quality MTs as a key part of Toyota’s global supply chain. Previous investments of approximately 5.6 billion PHP in 2008 and 2.5 billion PHP in 2015 expanded production capacity and introduced new 6-speed MT production. These investments have significantly contributed to job creation and economic growth in the Philippines. The organizational change is expected to enhance TAP’s ability to deliver superior transmissions while continuing its positive impact on the local community.
This partnership underscores Toyota and Aisin’s commitment to optimizing powertrain production and developing innovative products. This collaboration strengthens the Aisin Group’s overall competitiveness in the powertrain sector and solidifies Toyota’s commitment to the Philippines market.
Aisin’s increased investment in Toyota Philippines signifies a major development in the country’s automotive industry. With the production of both MT and AT components, Toyota Aisin Philippines, Inc. is poised to become a leading transmission manufacturer in the region. This strategic move will not only boost the local economy but also contribute to the advancement of transmission technology in the Philippines.
