Philippines eyes first locally made hybrid cars

The Philippines is poised to manufacture its first locally made hybrid cars after Mitsubishi Motors Corp. said it plans to build hybrid electric vehicle production capability through Mitsubishi Motors Philippines Corp. at its existing plant in Santa Rosa, Laguna.

“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,” said Finance Secretary Frederick D. Go.

The plan was discussed during a meeting at Malacañang Palace on Monday between President Ferdinand R. Marcos Jr., Finance Secretary Go, and Mitsubishi Motors President and CEO Takao Kato, who reaffirmed the Japanese carmaker’s confidence in the Philippine economy.

Mitsubishi said its proposed investment is tied to the Philippine government’s Electric Vehicle Incentive Strategy, or EVIS, program, which is now being finalized by the Board of Investments for endorsement to the Fiscal Incentives Review Board and approval by the President.

Subject to approval of its EVIS application, Mitsubishi Motors Philippines plans to begin production of a new hybrid electric vehicle model in Santa Rosa around the middle of calendar year 2028.

The company said it is also planning additional investments to upgrade its facilities for electrification, a move expected to help expand the local supply chain and create jobs in the region.

Mitsubishi is likewise looking at the possibility of exporting products from its Laguna plant, adding a potential manufacturing and trade dimension to what the government is framing as a strategic industrial investment.

The planned localization of hybrid production supports the country’s push for cleaner transport and higher-value manufacturing at a time when the Philippines is trying to attract more technology-intensive investments.

By producing hybrid electric vehicles locally, the Philippines could reduce dependence on oil imports and help curb urban emissions while building up capabilities for a gradual shift to full electrification.

That direction is in line with Republic Act No. 11697, or the Electric Vehicle Industry Development Act, which declared it state policy to support energy security, promote electric vehicles, and develop the domestic EV industry.

Executive Order No. 12, signed in 2023, also reduced tariff rates on certain electric vehicles and related parts as part of the government’s effort to accelerate adoption and investment in the sector.

For Mitsubishi, the Philippines remains one of its key markets, with the company saying it has long maintained production and sales operations in the country.

As of March 31, 2026, Mitsubishi Motors Philippines had paid-up capital of PHP 1.64 billion, production capacity of 50,000 units a year, and a plant site covering about 21.4 hectares in Santa Rosa City, Laguna.

Its current production models are the Mirage, Mirage G4, and L300, while its local sales lineup includes the Mirage, Mirage G4, Xforce, Xpander, Xpander Cross, Destinator, Montero Sport, Triton, L300, and Versa Van.

The Department of Finance said investments like this become more valuable during uncertain times because they can open more job opportunities for Filipinos while pushing the country toward a more sustainable and technology-driven industrial future.

If approved and carried through, Mitsubishi’s hybrid vehicle program would mark a milestone not just for the local automotive sector, but also for the Philippines’ broader attempt to position itself as an emerging hub for electric vehicle manufacturing and investment in the region.