Mitsubishi Motors Philippines Corp. (MMPC) said it will align its planned P7-billion investment in local hybrid electric vehicle (HEV) production with the government’s newly launched Electric Vehicle Incentive Strategy (EVIS).
The company said the issuance of Executive Order (EO) 121, which establishes the EVIS program, provides a framework to encourage investments in electric vehicle production while strengthening the country’s automotive manufacturing base.
‘In line with this national direction, MMPC will participate in the program through Mitsubishi Motors Corp.’s P7-billion investment to locally produce hybrid electric vehicles in the Philippines,’ the company said in a statement.
MMPC Chairman Noriaki Hirakata said the investment will support the government’s objective of expanding local vehicle production while improving the country’s manufacturing competitiveness.
‘Backed by Mitsubishi Motors Corp.’s P7-billion investment commitment, we are ready to support the government’s vision through the local production of hybrid electric vehicles, further enhancing the country’s manufacturing capabilities and competitiveness.’
Signed by President Ferdinand Marcos Jr., the EVIS executive order allocates up to P60 billion in fiscal support for EV manufacturing projects.
Under the program, participating companies may register up to two EV models, with fiscal support capped at P15 billion per enrolled model.
Projects must invest at least P5 billion, target production of 10,000 units per model, and bring their products to the domestic or export market within three years of registration.
Instead of cash incentives, qualified participants will receive non-transferable tax payment certificates, which may be used to settle corporate income tax, value-added tax, excise tax and import duties.
The program also provides fixed investment support covering expenditures on tooling, equipment, engineering and research and development, excluding land acquisition. HEVs qualify for government support equivalent to 30 percent of eligible capital investments, while battery electric vehicles are entitled to 40 percent.
Participants are likewise required to maintain after-sales service and spare parts support for at least 10 years, alongside a battery recycling or disposal plan.
MMPC said its planned hybrid vehicle production marks another phase of its manufacturing operations in the Philippines, where it has operated since 1963.
The company currently manufactures the Mirage G4 and L300 at its 23-hectare production facility in Sta. Rosa, Laguna, which has an annual production capacity of 50,000 units.
According to MMPC, local hybrid vehicle production is expected to support the expansion of domestic manufacturing capabilities, encourage further development of the automotive supply chain and contribute to the country’s transition toward electrified transportation.
‘Through this investment, we look forward to creating greater value for the Philippine economy, supporting the country’s sustainability objectives, generating opportunities across the automotive ecosystem, and contributing to the continued growth of local vehicle manufacturing,’ Hirakata said.