Toyota Motor will expand its industrial estate south of Manila to 77 hectares from 25 hectares to help develop the export capacity of the Philippine automotive parts industry, Dow Jones reported.

Toyota Motor Philippines Corp. president Nobuharu Tabata on Wednesday signed an agreement with the Philippine Export Zone Authority that grants Toyota's industrial estate the status of a special economic zone, the report said, noting that a special economic zone enjoys various incentives, including income tax holidays and duty-free importation, for companies that operate within such a zone.

"The expansion (of the industrial estate) reinforces our commitment to establish the Philippines as a major automotive operation base in Asia," Tabata said in a statement cited by Dow Jones.

Akira Okabe, managing officer of Toyota Motor, said that Philippine exports of parts and components to Toyota's global network will reach more than $US350 million this year, Dow Jones said.

"The Philippines is a key base for Toyota production not just in (southeast Asia), but also globally," Okabe reportedly said.

Toyota's industrial estate also hosts automotive parts manufacturers such as Toyota Autoparts Philippines, Tokai Rika Philippines, and Aichi Forging Asia, the news agency added.

The industrial estate's expansion is part of the PHP3.4 billion expansion plan announced in May, Dow Jones said.