Mitsubishi Motors Philippines Corporation, a major consolidated subsidiary of Japanese automotive giant Mitsubishi Motors Corporation, is the longest staying automotive company in the country, celebrating 50 years in 2013.
Established as Chrysler Philippines Corporation on February 20, 1963, the company sells over 16 types of vehicles in the Philippines: from passenger vehicles such as the LancerEX, Mirage, and Montero Sport; to commercial vehicles such as the Adventure and L300 chassis cab; and heavy haulers like the Canter light truck and Rosa mini-bus.
Mitsubishi produces about 15,000 vehicles a year at its 190,224 sq. m. plant along Ortigas Avenue Extension, Cainta, Rizal.
With its production base and expansive dealership network in the archipelago, Mitsubishi has consistently been one of the leading automotive companies in the Philippines.
It is also certified by the International Organization for Standardization (ISO) and is the first in the country to receive Integrated Management Systems (IMS) certification.
Investing in the Philippines
Mr. Dante C. Santos, First Vice President of Mitsubishi Motors Philippines Corporation, explains that the company’s decision to invest in the Philippines is motivated by the country’s sound macroeconomic outlook, strong demand on various types of automotive products, and political stability in the immediate future.
“We [Mitsubishi] read the economic outlook and will put our money on countries with good economic forecast… Other than that, we are the only company which has products coming from the small car, SUVs, and trucks – the whole spectrum. When we talk to companies, I can package all your transportation needs, from the company car plan to your distribution requirements… And our foreign exchange has greatly improved,” he says.
In terms of market share, Mitsubishi Motors Philippines is also one of Mitsubishi Motors Corporation’s best-performing subsidiaries within Southeast Asia.
The company attributes its success to their in-house human resource development programs, long experience and expertise of executives and employees in the Philippines, nationwide giant dealership network, production modernization plans, and single brand identity.
At present, Mitsubishi Motors Philippines continues to sell a wide variety of product lines, less than 40% of which are completely knocked-down (CKD) units and more than 60% are imported completely built-up units (CBU).
To complete its CKD kits, the company sources its automotive parts requirements from local and foreign manufacturers, wherein Mitsubishi’s engineers are sent to help them comply with product quality standards.
Enhancing Business Operations in the Philippines
Mitsubishi continues to be optimistic about its investments in the Philippines. Capitalizing on the county’s strong macroeconomic fundamentals, stable political climate, and higher domestic demand, Mitsubishi is confident that its share in the Philippine automotive market will continue to grow.
“Our market share has historically been at 20%. We are at number two. If one compares population density versus transportation availability per country, we [the Philippines] are low… Assuming that 500,000 population market in 2020, and we keep our market share at 20%, we are looking at Mitsubishi at a hundred thousand [vehicles] from 43,000…” Mr. Santos says.
In anticipation of continued positive market developments and the current business environment, Mitsubishi is expanding its operations through its new Sta. Rosa facility in Laguna.
With the Sta. Rosa facility, their company aims to fast-track its growth through more modern and efficient production processes.
Mitsubishi values the Philippines as a strategic market in Southeast Asia and continues to appreciate the efforts of the Philippine government for the development of the entire automotive industry.
“Yes, the Philippines can be a CBU producer. It is a goal for Mitsubishi [Motors Philippines]; it’s just a matter of the product combination given to produce here,” he says.
As the Philippines continues to grow, Mitsubishi is enthusiastic in continuing to do business in the country for the next fifty years and beyond.
For more information on Mitsubishi Motors Philippines, visit http://www.mitsubishicarsphilippines.com.