Electrifying mobility that’s proudly Pinoy
Although fuel prices have started descending from their dizzying heights a few weeks ago, Filipinos remain hugely attracted to electrified vehicles.
This is because the U.S.-Iran conflict made one thing perfectly clear – our country’s heavy dependence on imported fuel make us extremely vulnerable to price hikes. Put another way, our personal mobility, the broader Philippine economy and even the cost of our basic needs are at the complete mercy of neocolonialist forces thousands of kilometers away.
Electrified vehicles allow regular motorists and businesses to reduce or, in the case of battery-electric vehicles (EV), totally eliminate fossil-fuel consumption. It is arguably this flexibility and freedom that has led to the huge market shift to electrified vehicles over the past few months.
Last April, Mitsubishi Motors Philippines Corporation (MMPC) said it aims to build a Pinoy-made electrified vehicle under the government’s upcoming Electric Vehicle Incentive Strategy (EVIS). We look at what this bold move entails and how it promises to benefit all Filipinos.
EVIS
Although the final details of EVIS have yet to be officially released, the Japanese automaker announced that it will be producing a brand-new hybrid EV at its sprawling plant in Santa Rosa, Laguna by mid-2028.
“The Philippines has long been one of our most important markets, where we have engaged in production and sales for many years,” said Mitsubishi Motors Corporation CEO Takao Kato in an MMPC press statement.
“In cooperation with the Philippine government, we are honored to contribute to the advancement of vehicle electrification and industrial development through the EVIS program, as well as to support the further growth of the Philippine economy,” he added.
MMPC certainly has the experience in taking part in such a high-investment scheme because it also joined EVIS’ predecessor, the Comprehensive Automotive Resurgence Strategy (CARS) Program, with its Mirage hatchback and Mirage G4 subcompact sedan.
The CARS Program was enacted through Executive Order 182 in May 2015 by the late former President Benigno Aquino III. The government offered P9 billion each in incentives to three car companies that could locally produce 200,000 units from 2018 to 2024, with the majority of the parts also being manufactured in the Philippines.
The government was expected to earn a net revenue of P18.77 billion in income taxes, value-added taxes and withholding tax payments. But following the global economic slowdown caused by the COVID-19 pandemic, President Ferdinand Marcos Jr. approved the five-year extension of the program in 2023.
Following the President’s veto on P4.32-billion of CARS Program funding in the 2026 national budget, the government announced that it would pay its remaining obligations to participating automakers using savings from the 2025 national budget.
The car
Given that the Xpander and Xpander Cross were the best-selling models in the country last year, MMPC would likely go for the electrified version of these seven-seat, multi-purpose vehicles (MPV).
Introduced in February 2024, the Xpander HEV is available in other markets with a 1.6-liter, twin-cam, 16-valve inline-4 gasoline engine mated to a 1.1-kWh lithium-ion battery and an electric motor. Combined output is 114 horsepower and a monumental 255 Newton-meters of torque, which are coursed through a continuously variable transmission.
The Xforce HEV may also be on the table as MMPC’s first-ever domestic produced hybrid EV –it uses the same powertrain as its MPV cousin, but in a stylish, five-seat, crossover body. Both the Xpander HEV and Xforce HEV are being manufactured in Thailand, as of press time.
The perks
MMPC’s EVIS entry means that there could potentially be a well-priced Japanese rival to Chinese electrified vehicles that have flooded the market in recent years.
In the Philippines, Japanese automakers have long struggled against offerings from The People’s Republic that offer more features at far lower prices. MMPC’s bet could help further cement its spot as the country’s number-two automaker in terms of sales, especially with BYD Cars Philippines taking the number-three spot in 2025 in just two years.
A locally produced hybrid EV would also help government and private fleets fulfill the requirements of Republic Act 11697 or the “Electric Vehicle Industry Development Act,” which mandates the transition to electrified vehicles within a set timeframe.
In the end, we Filipinos win not only because of the fuel savings that this new vehicle promises, but also because of the expected growth in jobs to produce it. Given that Mitsubishi Motors is the longest-running automaker in Philippines with a 63-year presence on our shores, it seems that the Japanese automaker remains firmly with us in this new-energy era.
