Mitsubishi eyes PHL to be ‘3rd pillar of Asian exports’

March 1, 2017 at 16:22

MITSUBISHI Motors Corp. is setting a long-term vision of making the Philippines its third pillar of exports in Asia, starting with its participation in the government’s manufacturing stimulus program, the Comprehensive Automotive Resurgence Strategy (CARS). 

President and CEO of Mitsubishi Osamu Masuko said, with Thailand already exporting more than 200,000 units and Indonesia slated to start shipping units in two years, the Philippines can serve as the “third pillar” in exporting, given that economies of scale be reached. 

“We’d like to enhance competitiveness in the Philippines that will lead [us] to export autos. We’d like to make it so such that we can be an export industry,” Masuko told the media at the briefing following the unveiling of the first locally produced Mirage G4.

This is part of Masuko’s “complementation” vision that each of the countries can specialize in a particular model, with possibly a commercial vehicle to be produced in the Philippines in the future.

“We would want to have a joint study with the government on what kind of vehicles would be better to manufacture in the Philippines,” Masuko said. 

However, for this to come to fruition, demand must increase from the current annual sales of 400,000 units. 

“In the automotive industry, you need volume in order to reduce cost…in the Philippines, the numbers are still small, so there needs to be growth for the Philippines to be the third pillar. This is needed to be at par with Thailand and Indonesia,” Masuko noted. 

“Market size should grow to 500,000 to 1 million,” he added.

For now, the company’s participation in the government’s CARS Program is the first step toward this vision as an exporting hub; Mitsubishi has already poured in P4.3 billion in its factory in Laguna, to comply with the program requirements for increased volume production. 

Mitsubishi is eyeing an annual production capacity of 50,000 units. This can be doubled to 100,000 units with additional investments, as the company scales up its parts localization. 

CARS participants are required to produce 600,000 units during the program.

Mitsubishi’s top executive paid a visit to Malacañang on Monday, presenting the first locally manufactured Mirage G4 under the CARS Program, to President Duterte. 

The company will also begin localization of its Mirage G4 hatchback variant in May.

Source: https://www.businessmirror.com.ph/mitsubishi-eyes-phl-to-be-3rd-pillar-of-asian-exports/