Mitsubishi open to boosting HEV production, joining RACE

MANILA, Philippines — Mitsubishi Motors Philippines Corp. (MMPC) may spend more than the planned P7 billion investment for hybrid electric vehicle (HEV) production under the EV Incentive Strategy (EVIS), even as it keeps the door open to the government’s proposed incentives for traditional fuel-powered car manufacturing.

Ritsu Imaeda, president and CEO at MMPC told reporters that the firm’s investment plan is fluid and hinges on government policy and support for local manufacturing.

He said the planned investment for HEV production at the Santa Rosa plant in Laguna may exceed the P7 billion announced earlier.

“The details of the EVIS have not been announced yet. So alongside that, we also have to think about our investment. So we are just still undergoing the studies,” he said.

While President Marcos issued the executive order for the EVIS last July, the government has yet to release the implementing rules and regulations (IRR) for the program.

After missing its target to issue the IRR last month, Trade Secretary Cristina Roque said that the government aims to finalize the rules within this month.

Even as MMPC has announced its intent to participate in the EVIS by producing an HEV, Imaeda said that the firm is also open to joining the government’s proposed Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, which aims to incentivize the local production of internal combustion engine (ICE) vehicles.

“At this moment, for the Philippines, EVIS is the one that we are jumping on, which doesn’t mean we are denying the possibility of the RACE program,” he said.

If the RACE program would support MMPC’s next plan, he said that the firm would be open to taking part in it.

For now, he said MMPC’s focus is on the EVIS.

But at the same time, he said MMPC needs to be flexible with its investment plans for the next four to five years, citing policy changes that may take place under the next administration.

“Are we going to develop more for EVs? Or are we going for ICE? It’s still under discussion right now because we have plan A, B, C, D, E and F,” he said.

“It is very difficult how the Philippines is going to change in the next government shift. Are they going to encourage the economy in the manufacturing industry or auto industry? Are they still going to support the BPO (business process outsourcing), the service industries? So we also have to be flexible,” he said further.

Earlier, MMPC took part and enrolled the Mirage in the government’s Comprehensive Automotive Resurgence Strategy program, which provided fiscal support for investments in local vehicle manufacturing.