Mitsubishi Motors Philippines Corporation (MMPC) is reassessing its planned investment in local hybrid electric vehicle (HEV) manufacturing, while maintaining its stated intention to participate in the Philippine government's Electric Vehicle Incentive Strategy (EVIS) programme.

Mitsubishi Motors Corporation had previously announced plans to manufacture HEVs at its Santa Rosa plant in Laguna as part of a PHP 7 billion (US% 110.2 million) investment plan. The automaker has proposed establishing a hybrid vehicle production hub in the Philippines and has expressed support for government initiatives to promote electric vehicle manufacturing.

MMPC's intention to participate in EVIS was initially announced by Philippine President Ferdinand Marcos Jr. and Mitsubishi Motors Chief Executive Officer Takao Kato. However, recent reports indicate that the company is reviewing the proposed investment to assess the commercial viability of local hybrid vehicle production.

According to a report by media sources, MMPC President and Chief Executive Officer Ritsu Imaeda said that the planned investment remained under review. He explained that the company was assessing whether additional investment in Philippine manufacturing would be commercially viable.

One of the reasons for the reassessment is that the government, through the Board of Investments (BOI), has yet to release the full details of the EVIS programme. The BOI has not issued the implementing rules and regulations required to open the application process, while MMPC is still undergoing the approval process to qualify for the programme.

Uncertainty regarding future government policies is another factor influencing the company's decision. Imaeda reportedly said that Mitsubishi was considering whether the next administration, which will take office in 2028, would maintain the same level of support for electric vehicles as the Marcos administration. Changes in policy priorities could affect the long-term viability of the proposed investment.

The EVIS programme, established under Executive Order (EO) No. 121, aims to reduce the price gap between electric vehicles and conventional vehicles, including hybrid models, while encouraging local manufacturing. It provides for fiscal support for the production of battery electric vehicles (BEVs), HEVs, plug-in hybrid electric vehicles (PHEVs) and fuel cell vehicles, covering passenger cars, commercial vehicles, and related parts and components. Companies seeking to qualify for the programme must invest at least PHP 5 billion in new manufacturing facilities.

MMPC continues to operate local vehicle manufacturing facilities in the Philippines. Imaeda has highlighted the need to account for changing market conditions and uncertainty over government policies when assessing investment decisions.

The company is also considering participation in the Revitalising the Automotive Industry for Competitiveness Enhancement (RACE) programme, which provides incentives for the local production of internal combustion engine (ICE) vehicles. RACE replaces the previous Comprehensive Automotive Resurgence Strategy (CARS) programme, under which Mitsubishi manufactured the Mirage G4 and L300.

Imaeda has stated that considering RACE as an alternative does not mean Mitsubishi has abandoned its plans under EVIS. MMPC continues to assess the possibility of local hybrid vehicle production. If implemented, the plan could make the Philippines Mitsubishi's second hybrid manufacturing location in ASEAN after its main plant in Thailand. Indonesia and Malaysia also have automotive manufacturing operations that compete with the Philippines for vehicle production investments.

In an official statement, MMPC reiterated its intention to participate in the programme: "Mitsubishi Motors Philippines Corporation (MMPC) reaffirms its commitment to participating in the Philippine government's Electric Vehicle Incentive Strategy (EVIS) program, which supports the company's plan to locally manufacture Hybrid Electric Vehicles (HEVs) in the Philippines. MMPC continues to coordinate with relevant government agencies and stakeholders and is preparing for its registration under the program."