Mitsubishi Motors Philippines Not Ruling Out RACE Participation, Keeps EV Focus
Key Takeaways
- •MMPC is keeping open the possibility of joining the government's RACE program but is currently prioritizing domestic electric vehicle production.
- •The RACE program provides P9 billion in incentives for local internal combustion engine vehicle output, with three participating automakers each set to receive P3 billion.
- •MMPC plans a P7-billion investment that could grow larger to produce hybrid EVs and assemble batteries and components at its Sta. Rosa, Laguna plant, part of a plan to make the Philippines its next EV export hub.
- •The company intends to enroll the project in the EVIS program, which offers up to P60 billion in support, and is awaiting program details before determining the final investment size.
- •MMPC's 2025 sales declined 2.6% to 86,808 units, leaving it second in market share at 18.72%, and it expects sales growth in line with last year's pace due to weak buyer appetite.
Mitsubishi Motors Philippines Corp. (MMPC) is not ruling out participation in the government's Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, though its priority remains the domestic production of electric vehicles (EVs).
"There is a possibility (for RACE), but we are currently focused on the EVs at the moment," MMPC President and Chief Executive Officer R Imaeda told reporters on the sidelines of the Makati Business Club's 45th anniversary celebration last week.
"As a manufacturer, we cannot invest in everything in this current environment," he said, noting that the Philippines is one of several locations for MMPC's production hubs.
The RACE program seeks to encourage the local production of internal combustion engine vehicles by providing P9 billion worth of incentives. Under the program, three participating automakers will receive P3 billion each.
Earlier this year, the Japanese automaker announced plans to make the Philippines its next EV export hub — a role that would see vehicles built at its local plant shipped to markets beyond the Philippines. That move was followed by a P7-billion investment to produce hybrid EVs, as well as to assemble batteries and other components at its Sta. Rosa, Laguna plant.
MMPC plans to enroll the project in the government's Electric Vehicle Incentive Strategy (EVIS), which aims to encourage domestic EV manufacturing by providing up to P60 billion in fiscal support. The two programs differ sharply in scale and focus: RACE channels P9 billion toward combustion-engine production, while EVIS is designed to back the kind of domestic EV manufacturing MMPC is now pursuing.
Mr. Imaeda said investments for the upcoming hybrid EV production facility could exceed the P7-billion estimate. The company is awaiting the details of the EVIS program before it determines the size of the investment, he noted — making the release of those details the next development to watch for the project's final scale.
The company projects its overall sales growth to be in line with last year's pace, citing tepid buyer appetite. In 2025, MMPC's sales declined 2.6% to 86,808 units, placing it second in Philippine market share at 18.72%.
"The economic situation in the Philippines is showing a bit of a downtrend," he said, citing inflation and unemployment. "I think the automotive industry itself is also shrinking now, in terms of the appetite to buy cars."
The company is betting on a seasonal boost over the holidays, Mr. Imaeda said. MMPC vehicle sales slumped 20.3% to 46,162 units.
— with a report from Beatriz Marie D. Cruz
