Despite challenges elsewhere, Mitsubishi Motors says they remain committed to the Philippines. In fact, the Japanese carmaker pledged an additional P 7-billion investment in the next five years, including plans to join the Philippine government’s replacement to the CARS program.
The move was announced formally by Mitsubishi Motors Corporation President and CEO Takao Kato during a courtesy call to Philippine President Ferdinand “Bongbong” Marcos Jr.
“In ASEAN, the Philippines is our number one market,” Kato told the President.
Mitsubishi Motors ended 2024 with 89,124 units sold, a 13.72 percent year-on-year growth. It also represents a sizeable 19.07 percent of all new cars sold in 2024.
To that end, Kato says they will produce a new model at the Santa Rosa, Laguna assembly plant joining the Mirage and L300. Currently, the plant has an annual capacity of 50,000 units, but with the capability to produce up to 100,000 units.
Furthermore, Mitsubishi will be included in the Philippine government’s Revitalizing the Automotive Industry for Competitiveness Enhancement or RACE program. RACE is the proposed program to replace the current Comprehensive Automotive Resurgence Strategy (CARS) program.
The Philippine government has yet to outline the new RACE program, but the current CARS is a time-bound, performance-based program wherein the government extends fiscal and non-fiscal support to carmakers that commit to local manufacturing. Under the CARS program, a vehicle must realize 200,000 units of production in six years. Carmakers must also commit to the local manufacturing of 50 percent of the body shell and all large plastic assemblies.
Mitsubishi Motors’ continued investment in the Philippines is a bright spot to its otherwise challenging fiscal position.
The carmaker just slashed its net profit forecast for its fiscal year 2024 ending March 31, 2025 by a staggering 75.7 percent to just 35 billion yen—a decrease of 109 billion yen it predicted just last May. By comparison, Mitsubishi earned 154.7 billion yen in FY2023.
Mitsubishi Motors cited poor wholesale sales, increased selling expenses due to stiffer competition, the impact of inflation on areas such as supplier support and other accumulated expenses for this drastic recalculation.
The company also revised its sales forecast down slightly from 895,000 to 848,000 units for FY2024. A lot of that comes down to lower sales in Southeast Asia, specifically in Thailand and Indonesia.
Kato went on to say Thailand’s unfavorable exchange rates and ongoing household debt increases will continue to have a negative impact on profits. Things have gotten to the point where Mitsubishi has had to restructure its offices in the region, which included the early retirement of 300 employees.
Will the new locally manufactured car be their best selling xpander? And will it be exported?
ReplyDeleteI honestly don't think PH-made Mitsubishi cars would make it overseas, mostly because Mitsubishi's key market is Southeast Asia and Japan is geographically close to the latter in fact.
DeleteAFAIK, the only exports that Mitsu PH does locally are the L300 mini trucks that get sent to Indonesia (e.g. Mitsubishi COLT truck)
Deletehttps://www.autoindustriya.com/auto-industry-news/look-ph-made-mitsubishi-l300-bound-for-indonesia.html
Additionally, Mitsubishi used to make cars in Europe before closing itself in 2012, see also:
Deletehttp://en.wikipedia.org/wiki/VDL_Nedcar
Production of new Colt L300 has returned to Indonesia and MMPC has stopped the exports from Sta. Rosa plant.
Deletesalamat mitsubishi
ReplyDeleteManifesting that this would be Xpander / Xpander Cross or the production model of the DST concept.
ReplyDeleteKudos mitsu ph
ReplyDeleteI think the Xpander MPV would be their third model to be produced locally, being one of their best sellers.
ReplyDeleteI'm still very surprised how Mitsubishi is doing well locally, especially with the ancient and horrible Mirage G4 being their best seller. The Xpander is reasonably competitive in its class but is also starting to fall behind its competitors (if Toyota PH sold the Avanza and Veloz as one product, it would've outsold the Xpander). The L300 is probably the worst LCV out there when the Traviz and Tamaraw are much newer and better options, not to mention the also newer Korean and Chinese competitors. The Xforce is extremely overpriced and is also the most unrefined crossover to drive in its class. The Triton is probably the only relatively decent product that Mitsubishi PH sells but even that is kinda mediocre compared to the segment's best, the Ford Ranger. Yet somehow, Mitsubishi PH still is the 2nd best selling locally and in some other ASEAN regions like Indonesia and Vietnam.
"Yet somehow, Mitsubishi PH still is the 2nd best selling locally and in some other ASEAN regions like Indonesia and Vietnam."
DeleteDami mo naman sinabing negatibo sa mitsu products pero di mo pala alam bakit mabenta sya pangalawa sa toyota lol!
Sales numbers of Xpander is still higher than low quality Toyota Avanza and Veloz..Sales of Xpander are good as they don't like the low ground clearance,underpowered engine and mediocre NVH of the Avanza and Veloz
DeleteL300 is much cheaper and got good ground clearance that's why it still sells well
XForce can be bought at 6 digit cash discounts that's why the sales of it improved now
Because just like in other ASEAN and ASIAN countries, people here values practicality. Look at SUZUKI in India, their Eeco and other cars are decades old but still sells well. They have new but boring cars but they sell well. Just like in PH, Mirage might be a decade old already but it provides the practicality that Filipinos need - reliability and fuel efficiency. Same with L300. Xpander and Xforce offers other value for money - looks, ride and a bit of tech.
DeleteCars that don't value practicality are mostly embraced by people of Europe, US, Canada and also Australia.
DeleteThe Xpander is likely the product to be produced locally. It worries me a bit because that would mean updates to the model would take longer than having the product imported, especially since the Xpander should be getting replaced by a new generation model in the next few years. If MMPC decides to manufacture the current gen Xpander locally, then immediately it would be outdated once the next gen Xpander is released. Look at how long it is taking for Toyota PH to replace the Vios with the new gen! (But another reason is likely because Toyota PH is not pressured to launch the new Vios because the current one is still head over heals selling greater than any other vehicle in the market)
ReplyDeleteAlso, I am not sure what Mitsubishi is thinking by not selling the Xpander HEV already. They could've taken advantage of the fact that Toyota still has not launched a hybrid Avanza/Veloz (which they can easily do by utilizing the Yaris Cross HEV powertrain or even the Raize HEV powertrain) and beat them to the punch by offering a more attainable hybrid MPV than the Innova Zenix. The Avanza/Veloz HEV may be delayed because Toyota is likely still busy restructuring Daihatsu from their recent scandals, so Mitsubishi should take advantage of this and sell the Xpander HEV to multiple markets already. Yet it is still somehow exclusive to Thailand.
Let's just say that Toyota does not have any non-Japanese partner to get the job done that quick, Mitsubishi and owner Nissan on the other hand, appears to be reflecting with their failure to merge with Honda, so it maybe hard to think that Nissan and Mitsubishi could join forces with Hyundai and Kia for the long run.
DeleteDestinator 7 seater crossover SUV or most likely the heavily updated versions of the Mirage hatchback and Mirage G4 Sedan with new interior and exterior designs.
ReplyDeleteBring back the evo dammit
ReplyDeleteno 1 cares
DeleteMitsubishi Motors isn't interested of producing low volume and expensive to produce high performance vehicle like the Lancer Evolution
DeleteI am more curious about the models Mitsu would manufacture in PH. Whatever these are, these should be volume models they can sell for the next 10 years w/o major changes. Me think this will be the Xpander and/or L300. This however also means we expect L300 to live beyond 50 years in PH soil w/o major changes. Xpander sold well in 2024. With so many competitors having newer and better rides, there is no guarantee it will continue to sell well in the next 5 years. It better be the revised one with more powerful engine or a new gen. It can be the incoming DST PPV or the Strada but these are not exactly volume models.
ReplyDeleteNot sure about that, but the only thing with Mitsubishi is that its owner (Nissan) isn't the only concern, but also given the fallout of ties with Honda recently means Hyundai may not just be the only carmaker to benefit from Nissan and Mitsubishi's problems as to say that.
DeleteStep up China brands. Do more for our country. There is more to a product than features and price. Think of service and commitment to your market. Kotse lang kasi nila subsidized hindi ang factories outside china
ReplyDeleteFoton owns an assembly plant in the Philippines for decades already
DeleteLocally assembled Mitsubishi vehicles are bare and expensive same goes for Philippine made Toyota vehicles
Only Asians can help Philippines, just look at Ford in PH before...
DeleteMitsubishi needs a newer Mirage, a newer Xpander, a newer Montero, a cheaper ASX and all with Hybrid versions. Whew. Big challenge for the methodical Japanese.
ReplyDeleteHonestly, no. Anyway Mitsubishi no longer manufactures cars in North America and Europe after all, so Hyundai and Kia appears to win just as anything that's South Korean in general.
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