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Thursday, March 28, 2024

Mitsubishi Motors PH aims to sell 1m vehicles over the next decade

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Mitsubishi Motors Philippines Corp. said it aims to sell another 1 million vehicles in the next decade despite challenges to the industry led by the tax reform program.

MMPC president and chief executive Mutsuhiro Oshikiri said achieving another 1 million vehicle sales would be possible with the push for the Comprehensive Automotive Resurgence Strategy program of the government.

“What we achieved in 44 years, I believe we can do it again in 10 to 11 years. In 11 years we’ll have as much as 2 million units sold in the Philippines,” he said in a briefing Monday night prior to Mitsubishi’s 1 million sales celebration in Makati City.

The dream sales projection, he said, would also improve the company’s market share to at least 20 percent. Mitsubishi’s current market share in the local auto sector is about 16.5 percent.

The company said its plan to export the Mirage, its official entry to the auto incentives program, would help achieve bigger sales in the near term.

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Oshikiri said the mother company in Japan was assessing the prospects of bringing the Mirage to other Southeast Asian countries.

MMPC sales dropped 8.3 percent in 2018  to 67,512 vehicles from 73,590 units in 2017 following the implementation of the first package of the Tax Reform for Acceleration and Inclusion law that effectively increased the excise taxes on vehicles.

The company expects sales to remain flat in 2019 and rebound by late 2020.

The company is also working on making electric vehicles and hybrid models more accessible and affordable to Filipinos.

Pure electric vehicles are exempted from excise taxes in the Philippines, but plug-in hybrid electric vehicles pay 50-percent of the applicable excise tax.

Mitsubishi is currently coordinating with the Trade Department and other agencies to help the industry negotiate for the removal of customs duties and bring down the cost of acquiring hybrid vehicles.

Results of a joint study by Mitsubishi and government agencies will be out within the month  to determine how hybrid vehicle makers can reduce the cost of unit acquisition and increase its footprint in the Philippines.

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