Manila: The Philippines is set to manufacture its first locally produced hybrid electric vehicles (HEVs) following Mitsubishi Motors Corp.'s (MMC) announcement of plans to establish a dedicated production line at its Santa Rosa, Laguna plant. MMC President and CEO Takao Kato revealed the plan during a meeting with President Ferdinand R. Marcos Jr. and Finance Secretary Frederick Go in Malaca±ang, indicating a robust level of investor confidence in the Philippine economy.

According to Philippines News Agency, this initiative marks a significant investment poised to transform the future of the country's automotive industry. Finance Secretary Frederick Go remarked on the potential for the Philippines to become an exporter of hybrid cars, describing it as a "landmark investment." The project, to be executed by Mitsubishi Motors Philippines Corp., aims to enhance the localization of advanced vehicle manufacturing, aligning with the nation's efforts to foster cleaner transport and bolster higher-value industries.

The local production of HEVs is anticipated to diminish the country's reliance on imported fuel and decrease urban emissions. This aligns with the Electric Vehicle Industry Development Act, which advocates for the adoption and manufacture of electric and hybrid vehicles. Furthermore, MMC is evaluating the feasibility of exporting hybrid vehicles from its Laguna facility, potentially establishing the Philippines as a hub for next-generation automotive production in the region.

President Marcos expressed his approval of this development, emphasizing its broader economic impact. In a social media post, he highlighted Mitsubishi Motors' investment as a reflection of strong confidence in the Philippine economy, noting the prospects of job creation, reduced fuel dependence, lower costs for drivers, and increased options for Filipinos.

The Board of Investments is in the process of finalizing the Electric Vehicle Incentives Strategy program, aimed at attracting more investments in the sector. This program is pending approval from the Fiscal Incentives Review Board and the President.