MITSUBISHI Motors Philippines Corp. (MMPC) is aiming to hit 100,000 units of produced vehicles within the year as part of the company’s commitment to the government’s incentives program for local car manufacturing.
MMPC First Vice-President for Corporate Division Imelda M. Abadilla-Brown said the company has already produced 90,916 units as part of its commitment to the Comprehensive Automotive Resurgence Strategy (CARS) program.
The MMPC is required to produce at least 200,000 units of the Mirage hatchback and Mirage G4 sedan models under the incentives program.
“We have already reached more than 90,000 units produced. We’re hoping we can hit the 100,000 units by the end of the year,” Ms. Abadilla-Brown told reporters at the sidelines of the company’s anniversary expo launch in Pasay City last week.
Ms. Abadilla-Brown said MMPC is eyeing to manufacture over 20,000 units of the Mirage models for the 2023 fiscal year, which is from March to April next year.
MMPC has produced 14,167 units to date, she said.
Meanwhile, the company sold 14,366 units to date, higher than over 12,000 last year, Ms. Abadilla-Brown added.
“The CARS program is something that the industry needs. It is a very good program. It’s very beneficial to the society. It generates jobs. We preserve jobs. We want to continue producing the Mirage,” she said.
MMPC has plans to add another model for local production, but said the company needs government support, Ms. Abadilla-Brown added.
“There are business aspirations, future plans, to bring in more local models. We want to add to the model lineup. But we need support from government to make it happen,” she said.
Asked about the possibility of producing its Xpander multipurpose vehicle (MPV) model locally, Ms. Abadilla-Brown said that the company has “intentions” to do so.
“We have aspirations. We have intentions. That’s why we’re engaging the government to provide us with the needed support to make it happen. On the timeline, it all depends on the extent of support that government will be able to provide,” she said.
The Trade department previously said it is hoping that MMPC would consider producing Xpander in the Philippines.
Meanwhile, Ms. Abadilla-Brown said an extension to its CARS commitment is “welcome.”
“For MMPC, we are hoping that the government will give us at least a minimum of five years (extension). Of course, anything more than that will be very much welcomed,” she said.
“With the support, we’ll be able to sustain the gains under the program. So, it’s not just about getting the volume, but to continue supporting our local suppliers. The CARS program should not be a one-time program. We hope to be able to continue enhance this program, sustain this program and in fact, we’re asking for a CARS 2,” she added.
The Private Sector Advisory Council (PSAC) in May announced that President Ferdinand R. Marcos, Jr. approved the group’s recommendation for the five-year extension of the CARS incentives program to help boost local automotive industry.
According to the PSAC, the five-year extension will continue the provision of tax incentives and support for car manufacturers that achieve the requirements for investment, production, and technology development
Launched in 2015 under Executive Order No. 182, the CARS program mandates participating car manufacturers to produce at least 200,000 units of their enrolled model in order to avail of incentives. The enrolled model is eligible for P9 billion in fiscal support.
The program, participated in by the MMPC and Toyota Motor Philippines Corp. (TMP), was launched as part of efforts to revive the local car production industry. MMPC produces the Mirage hatchback and G4 sedan, while the TMP manufactures the Vios sedan.
MMPC has until this year to meet the requirement under the program, while TMP has until next year. — Revin Mikhael D. Ochave
