Tokyo-based Mitsubishi Motors will participate in the Philippines’ Electric Vehicle Incentive Strategy ( EVIS ) programme with the goal of producing a new hybrid electric vehicle ( HEV ) model at its Philippine plant by mid-2028. 

“The Philippines has long been one of our most important markets, where we have engaged in production and sales for many years,” says Takao Kato, Mitsubishi Motors’ CEO, following a meeting with Philippine President Ferdinand Marcos Jr. “In cooperation with the Philippine government, we are honored to contribute to the advancement of vehicle electrification and industrial development through the EVIS programme, as well as to support the further growth of the Philippine economy.”

Mitsubishi Motors has had a plant in Laguna, a province about 40 kilometres south of Manila since 2015, when it took over the Ford assembly plant.  

In a separate statement announcing the development, Philippine finance secretary Frederick Go says the Japanese automaker’s “landmark investment” in the Philippines will “redefine the future of [the Philippines’] automotive industry”. 

“The even more exciting possibility,” Go adds, “is that we could be an exporter of hybrid cars.”

While Mitsubishi Motors’ application to join the EVIS programme is still subject to approval, Mitsubishi Motors Philippines Corporation ( MMPC ), the company’s production and sales subsidiary in the Philippines, is also already planning additional investments, including enhancements to its facilities to support electrification. 

“These initiatives,” MMPC states, “will contribute to expanding the local supply chain and generating employment opportunities in the region.” 

Meanwhile, the move by Mitsubishi Motors, the finance department notes, underscores the company’s strong confidence in the Philippine economy.

In addition to the planned manufacturing of HEVs, Mitsubishi also plans, Go points out, to export other automotive products from its Laguna plant.

“By producing HEVs locally, the Philippines can reduce oil import dependence and cut urban emissions, while also aligning with the Electric Vehicle Industry Development Act,” the finance department shares, adding that it also positions the Philippines for a more seamless transition towards full electrification.

The Philippines, which is reliant on imported fuel, is one of the country’s most hard-hit by the after-effects of the war in the Middle East, with fuel costs surging by up to 177%.

Marcos has declared a state of national energy emergency, with the country having about 50 days of fuel supply. However, the president has repeatedly assured the public that his government is already procuring some one million barrels of oil to augment the Philippines’ buffer stock. 

Mitsubishi’s investment, the finance department says, is all the more valuable during times of uncertainty.

The Philippines, along with the rest of Asia, has seen a boom in HEV and electric vehicle ( EV ) sales amid spiking fuel costs due to the war. 

VinFast, a Vietnam-based EV manufacturer that is listed on the Nasdaq, saw a 127% surge in annual sales in Vietnam in March, selling some 27,600 cars, and the number is expected to rise in the near future. 

The Philippine government is banking on local HEV manufacturing to boost job creation in the country, while also propelling the Philippines into a more sustainable and technological future.