Mitsubishi Motors Philippines Corp. (MMPC) is targeting a 20-percent market share this year as it rolls out new models and prepares to expand local hybrid vehicle production, with a medium-term goal of capturing at least a quarter of the Philippine automotive market.
MMPC Chairman Noriaki Hirakata said the company expects Philippine sales to grow by 5 to 6 percent this year under ‘normal market conditions,’ driven by demand for models such as the Xpander, XForce, Triton and Mirage.
‘This year, we try to get 20 percent market share. And for the medium-term plan, we intend to get 25 percent market share, minimum,’ Hirakata told reporters during a media roundtable in Makati City on Monday.
The Mirage currently accounts for about 40 percent of MMPC’s total Philippine sales, making it the company’s biggest-selling model in the country. MMPC manufactures the Mirage G4 and L300 at its 23-hectare plant in Sta. Rosa, Laguna, which has annual capacity of 50,000 units and is currently operating at about 90 percent of capacity.
The company is considering increasing the plant’s capacity, although Hirakata said the decision would depend largely on market demand for its planned hybrid vehicle.
The planned hybrid program could also give the Philippines a larger role in Mitsubishi’s regional production network. The company is exploring the possibility of exporting locally produced hybrid vehicles, although none of its Philippine-made models are currently exported.
‘We are seeking for the export opportunity of this newly produced hybrid vehicle. It’s good for the Philippines. By exporting vehicles from the Philippines, we can improve the trade balance of the nation,’ Hirakata said.
Potential export markets would not be limited geographically, he said, provided the vehicles meet the safety and emissions requirements of their respective markets.
EVIS investment
The expansion is tied to Mitsubishi’s planned participation in the government’s Electric Vehicle Industry Strategy (EVIS), under which the company intends to invest P7 billion to produce hybrid electric vehicles locally.
Signed by President Ferdinand Marcos Jr., the EVIS executive order provides up to P60 billion in fiscal support for electric vehicle manufacturing projects.
‘We are very pleased with that obligation. And we are having a detailed discussion to compose. So, we are having a good discussion about how to make it happen,’ Hirakata said.
MMPC is awaiting the registration of EVIS’ implementing rules and regulations before formally proceeding with its participation.
The company initially plans to produce one hybrid model locally as it develops its manufacturing capabilities. ‘For now, just one, because we need to improve our capability to produce hybrid vehicle,’ Hirakata said.
MMPC has not set a specific annual production target for the hybrid model, saying output will depend on market demand.
‘As many as possible. There’s no limitation. But we cannot disclose the annual target production number for the competition issue,’ Hirakata said.
The P7-billion investment will be used to expand the existing Sta. Rosa facility rather than build a new plant. MMPC also plans to add between 300 and 500 engineers for its hybrid manufacturing operations.
He added the investment could eventually exceed P7 billion if demand for the locally produced hybrid vehicle is stronger than expected.
Beyond vehicle sales, the company’s medium- to long-term Philippine strategy includes improving cost competitiveness, increasing productivity through artificial intelligence and data centers, and expanding earnings from its wider automotive value chain.
The company is also looking to grow sales of higher-priced vehicles through broader financing options.
Hirakata identified the Philippines as one of Mitsubishi Motors’ priority markets, alongside Japan and Vietnam. The Philippines is currently its largest market in Southeast Asia and second-largest worldwide after Japan.