Toyota Motor Philippines’ chair Alfred Ty shares his views on Toyota’s solid hold of market leadership from its humble beginnings
What does it take to become the market leader in the highly competitive Philippine automotive industry? And, perhaps more importantly, what does it take to maintain that lead, year after year, in a market that is growing not only in terms of people’s need for mobility but in the number of players seeking to grab a piece of that pie, too?
In other words, what is the secret formula that powers Toyota Motor Philippines?
As the joint venture between the conglomerate founded by the late visionary billionaire George S.K. Ty and the world’s largest automaker, Toyota Motor Corp., Toyota Motor Philippines has consistently held on to the top spot of the local sales ranking tables for several years now.
It holds a market share of slightly under 50 percent of the total vehicle sales in the Philippines every year, give or take a few points, with the second largest player having less than half of Toyota’s.
Of course, it is undeniable that the Japanese brand’s value proposition is compelling: a strong lineup of high quality vehicles in all the important price points, backed up by solid design and engineering, and a track record for aftersales service and support that is second to none.
But the brand’s ascent to this peak position from its humble beginnings in the local market is the result mainly of leadership skills on the part of the Tys — leadership that is now being manifested in Toyota Motor Philippines’ chair, Alfred Ty.
In an interview with the Inquirer, Ty pointed to the overall willingness — both of the organization and himself, personally — to embrace learning.
“True leadership is rooted in humility,” he said. “It begins with an openness to learning from others. This unlocks so many opportunities to work together with people and partners who are, in fact, better versed in their fields.”
Toyota Motor Philippines celebrated its 35th year of operations this year, and Ty recently recalled the company’s humble beginnings in 1988 with a startup team of only 20 people.
Few remember it today, but the late 1980s were challenging times for the country, both politically and economically. Starting a business venture in that environment was nothing short of a leap of faith, both for the company’s founder, the elder Ty, and Toyota’s big boss then, Dr. Soichiro Toyoda.
According to Ty, his father was initially hesitant and concerned about how the group could contribute to the partnership with Toyota since the Tys had no experience in the automotive field.
“Thanks to the support of the pioneer team, some of whom are still with us today, they tackled challenges one at a time, and the rest, as they say is history,” he said. Which brings us to Ty’s second tenet of leadership: courage in the face of the unknown.
“Having said that, we must also have the boldness to venture into new and unknown ventures,” the Toyota Motor Philippines chair said. “Stepping out of comfort zones is challenging but (you) should not lose sight of your objective.”
And that objective, believe it or not, goes well beyond just selling cars.
“Toyota’s leadership in the automotive market was never really a firm goal,” said GT Capital Auto and Mobility Holdings chair, Vince Socco. “Our ultimate goal is to create happiness, win smiles, and capture the hearts of people, of Filipinos.”
Socco, an old hand at Toyota Motor Philippines, who has also worked for the Toyota group in various capacities around the region over the years, said that the brand’s leadership is rooted in a tight relationship with its customers.
“The philosophy is that if we sincerely listen to our customers, if we keep building ever better cars, if we fulfill our promise of providing number one quality in every aspect, and delivering customer satisfaction at every touch-point, one customer at a time then, perhaps, we will become the auto brand of choice,” he said.
“It is not about being the biggest but about being the better choice. It is not about being number one in the world or the country; it was simply about being the more preferred car in every barangay, town and home,” Socco explained.
That tight embrace with its customers has resulted in the spectacular growth that Toyota Motor Philippines has experienced over the last few decades. The company now has over 4,000 employees (from its startup headcount of 20) and recently announced that its new Toyota Tamaraw multipurpose vehicle will be produced in its Santa Rosa, Laguna plant.
All this is market leadership made possible by the web of trust that the company, its partners, and clients have for each other.
“There is no leadership without trust,” Ty said. “And that trust is best manifested in the mutual respect that we have with our people and partners.”
Socco — who has seen Ty rise through the company’s ranks, to eventually step into his father’s shoes, and now expand those shoes — said the Toyota Motor Philippines chair, continues to nurture the founding spirit that forms the firm’s core foundations.
“[Ty] has an endless curiosity about how to make things better by continuously learning about Toyota and the business,” he said. “His unquenchable thirst for all things related to autos and mobility is amazing. I remain constantly – and pleasantly – surprised when I receive news articles, social media links, YouTube videos and feature stories from Alfred out of the blue, at various times of the day, seven days a week.”
“He is also acutely tuned to customer needs, keeping a very close ear to the ground about concerns, issues and problems with Toyota cars, dealer services and TMP. He keeps the organization on its toes and drives Team Toyota Philippines to tirelessly do better,” Socco added.
With the recent decision of Toyota Motor Corp. to expand its strategy from selling vehicles, to becoming a total mobility solutions provider, Ty, Socco, and the rest of Toyota Motor Philippines have a fresh set of challenges to face and new mountains to climb.
Specifically, the company wants to become carbon neutral in its operations, as well as in the products it sells. And the initial path on this journey — introducing hybrid electric vehicles to the local market — is a whole new ballgame for the brand.
But Ty is confident that the old formula for leadership — tweaked to make it more relevant to the current environment — will stand him and his team in good stead.
“If I could capture leadership in two words, it would be humility and respect,” Ty said. “It is about doing the right thing for others, for the nation.”
Wise words for anyone who aspires for leadership in an ever-challenging world.
