Mitsubishi Motors Corporation has previously announced that it intends to produce hybrid electric vehicles (HEVs) at its Santa Rosa plant in Laguna, which is part of its P7 billion investment plan.
The Japanese automaker has been actively voicing its intention to have a dedicated HEV production hub in the Philippines. Mitsubishi has also been consistent in showing its support for the Philippine government’s EV push through the Electric Vehicle Incentive Strategy (EVIS) program.
But it seems that Mitsubishi is taking a step back from its previous direction as the automaker downshifts its HEV plan in the Philippines and has reportedly been rethinking its planned investment, according to a report published by Manila Bulletin.
Mitsubishi Motors Philippines Corp. (MMPC) President and CEO Ritsu Imaeda reportedly said that the company’s investment in local HEV manufacturing is still undergoing study. Imaeda also said that the full details of the EVIS have yet to be released, which has reportedly prompted Mitsubishi to rethink its P7-billion investment plan for local HEV production. The Board of Investments has yet to issue the implementing rules and regulations for the EVIS to open the application process.
Imaeda added that Mitsubishi is reassessing its investment plans amid uncertainty over whether the next administration will maintain the same level of support for EVs shown by the Marcos administration. As such, Mitsubishi is reportedly pondering whether its HEV investment plan is going to be worth it.
Of note, the EVIS program aims to narrow the price gap between EVs and hybrid cars from traditional motor vehicles, while also boosting local manufacturing of EVs, as per Executive Order (EO) No. 121. It will provide fiscal support for the manufacture of hybrid and battery EVs, specifically passenger cars and commercial vehicles. In detail, it includes battery EVs, hybrids, plug-in hybrids, and fuel cell vehicles, including parts and components. To qualify for the EVIS program, interested companies must invest a minimum of P5 billion in new manufacturing facilities.
However, MMPC released an official statement that says it remains committed to supporting the PH government’s EVIS program, which supports the company’s plan to locally manufacture HEVs in the Philippines.
Autocar’s Take
It seems that Mitsubishi is having second thoughts on its planned P7-billion HEV production hub investment due to policy uncertainties. Mitsubishi’s strategy to rethink its investment plan is valid, as it plays out scenarios that would be most beneficial to the company. The full specifics of the EVIS program have yet to be issued, which shows where Mitsubishi is coming from. More likely than not, most people would want to review the details and terms of the contract before signing and moving forward, which is where could be the reason why Mitsubishi is taking a step back and rethinking its strategy.
