Toyota Amplifies Investment in Philippines’ PUV Modernization with P1.1 Billion Commitment

Toyota Motor Corporation, a leading Japanese automotive manufacturer, has announced a significant increase in its investment in the Philippines’ Public Utility Vehicle (PUV) modernization program. This development comes as part of the company’s commitment to support the country’s transportation sector, pledging an additional P1.1 billion. This pledge was secured during Philippine President Ferdinand Marcos Jr.’s recent visit to Japan, where he engaged with the Japanese business community.

The investment will focus on the development of a modern jeepney, known as “the new Tamaraw,” which is anticipated to revolutionize the Philippine mobility service sector. Toyota aims to produce this new model at its Santa Rosa plant, which already manufactures the Vios and Innova models.

This initiative is aligned with the broader PUV modernization program started in 2017, aimed at upgrading the country’s transportation system. However, the program has faced challenges, including concerns from drivers and operators about the high costs of modern jeepneys, which need to comply with Euro 4 engine standards and cost around P2.3 to P2.8 million per unit.

In response to the difficulties faced by PUV operators in meeting consolidation requirements, the Land Transportation, Franchising and Regulatory Board (LTFRB) has allowed operators who are yet to consolidate or submit applications for consolidation to ply select routes until the end of January 2024. Despite this, the Department of Transportation (DOTr) has maintained the original deadline for individual PUV operators to consolidate.

In light of these developments, transport groups have filed an urgent petition with the Supreme Court to halt the December 31 deadline, arguing that it could lead to a transport crisis in Metro Manila, where compliance with the consolidation process is low. They have also filed for a temporary restraining order against the deadline, emphasizing the need for a more feasible approach to modernizing the country’s public transportation system​​.