The Philippines is set to manufacture its first locally produced hybrid vehicles after Mitsubishi Motors Corporation confirmed plans to establish hybrid electric vehicle (HEV) production in the country.
The Japanese carmaker will build a dedicated HEV manufacturing capability through Mitsubishi Motors Philippines Corporation at its existing plant in Santa Rosa, Laguna, signaling a shift toward higher-value automotive production.
The investment was discussed during a meeting between MMC president and CEO Takao Kato and Pres. Ferdinand R. Marcos Jr., along with Department of Finance secretary Frederick D. Go at Malacañang.
“This is a landmark investment that will redefine the future of our automotive industry. And the even more exciting possibility is that we could be an exporter of hybrid cars,” Go said.
MMC is also studying the potential to export hybrid vehicles from its Laguna facility, a move that could position the Philippines as a regional production base.
The planned rollout aligns with the country’s push to localize advanced vehicle manufacturing and reduce reliance on imported fuel.
It also supports the implementation of the Electric Vehicle Industry Development Act, which promotes the adoption of electric and hybrid vehicles.
Government officials said local HEV production could help cut urban emissions while preparing the country for a broader transition to full electrification as battery costs decline and renewable energy capacity expands.
The Board of Investments is finalizing the Electric Vehicle Incentives Strategy (EVIS) for endorsement to the Fiscal Incentives Review Board and eventual approval by the President, aimed at attracting more EV-related investments.
Separately, Sen. Sherwin Gatchalian urged the government to accelerate its electric vehicle push, citing rising fuel prices linked to tensions in the Middle East.
“The administration’s discussions with a major Japanese car company interested in building electric vehicles (EVs) in the country are a step in the right direction, given the ongoing conflict in the Middle East, which has caused fuel prices to spike dramatically,” Gatchalian said.
“I have long advocated for greater EV use as a way to reduce our dependence on imported fuel and protect the economy from global energy shocks.”
He added that stronger incentives are needed to speed up adoption, including preferential or zero-interest loans for EV buyers, toll exemptions, and free driving lessons, alongside ensuring that government incentives for manufacturers are delivered as promised.
