MANILA, Philippines – Mitsubishi Motors Corp. appears to be seizing opportunity amid disruption, making one of its most decisive moves yet.
Just a month into the Middle East crisis, the Japanese automaker revealed plans to develop what may become the Philippines’ first locally produced electric vehicle (EV), aligning the initiative with rising fuel costs that are driving consumers toward alternative transportation options.
This plan involves producing a “new hybrid EV model” at the Mitsubishi Motors Philippines Corp. plant in Santa Rosa, Laguna. Production is targeted to begin around mid-2028, contingent on the company’s application for the Philippines’ EV production incentive program.
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In preparation, Mitsubishi is planning to upgrade its Laguna facility to support electrification, alongside efforts to expand the local supply chain and generate jobs.
For president and CEO Takao Kato, the move reflects both the country’s long-standing role within Mitsubishi’s network of more than 80 markets and a growing willingness to localize next-generation manufacturing.
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“The Philippines has long been one of our most important markets, where we have engaged in production and sales for many years,” Kato says.
“We are honored to contribute to the advancement of vehicle electrification and industrial development through the Evis (Electric Vehicle Incentive Strategy) program, as well as to support the further growth of the Philippine economy.”
Even as the government grappled with a fuel crunch, it moved quickly to capitalize on the opportunity.
President Marcos—along with key economic managers, including Finance Secretary Frederick Go and Trade Secretary Cristina Roque—met Mitsubishi executives on April 6, effectively backing the investment.
Central to the pitch is the Evis, a still-unreleased fiscal package expected within the first half of the year. Mitsubishi is poised to become the first major manufacturer to align with the program, which aims to attract EV production to the country.
An EV hub soon?
Beyond production for the domestic market, the investment is being positioned with export potential in mind.
“This is a landmark investment that will redefine the future of our automotive industry,” says Finance Secretary Frederick Go. “And the even more exciting possibility is that we could be an exporter of hybrid cars.”
For the Philippines, Mitsubishi’s plan presents an opportunity to position itself as a viable EV production base.
Within days of the announcement, the Department of Trade and Industry identified Evis as its next flagship automotive incentives program, effectively sidelining earlier proposals focused on internal combustion engine production
Regionally, the timing is critical, with Asia increasingly becoming a battleground for EV manufacturing and sales. For instance, Vietnam’s first car brand, VinFast, has aggressively expanded into the Philippines, buoyed primarily by the electric taxi service Green GSM.
This is not to mention China, which remains lightyears ahead of Asian EV players. Its leading carmaker, BYD, took the Philippine market by storm in 2025, selling 26,122 units—the highest among EV brands and marking its strongest year yet locally.
Mass market
For Mitsubishi, currently the country’s second-largest car brand, the move also addresses a strategic gap.
It has yet to roll out a mass-market EV offering locally, with its electrified portfolio largely limited to commercial vehicles, such as trucks, based on Department of Energy listings. By contrast, market leader Toyota Motor Philippines Corp. has already established a strong foothold in electrified vehicles, particularly hybrids, which dominate the local EV mix.
Although the road ahead may be bumpy for Mitsubishi—with infrastructure constraints continuing to fuel “range anxiety,” particularly outside major urban centers—its rollout comes as Filipinos’ appetite for EVs grows.
Based on industry data, EV sales rose 18.7 percent month-on-month to 3,098 units in February from 2,610 in January. Year to date, EV sales jumped 66.9 percent to 5,701 units from 3,416 units a year earlier.
Of the total EV units sold in the first two months of the year, 4,551, or nearly 80 percent, were hybrid models.
And for even some of these units to be called Philippine-made someday, it would be a good start.