Jun 20 2016

Mitsubishi Motors building autoparts plant under Philippine government incentive scheme

MANILA -- Mitsubishi Motors has started constructing a stamping plant for the production of a compact car it has enrolled in a Philippine government incentive program.

The stamping facility will be completed in a years time and will be fully operational by January 2018. The autoparts plant can annually produce 30,000 units of the Mirage compact, which it has enrolled under the Philippines comprehensive automotive resurgence strategy (CARS) program, a targeted incentive scheme aimed at reviving the countrys auto industry.

The new plant will cost 2 billion pesos ($43 million) and is part of Mitsubishi Motors 4.3 billion peso ($92.6 million) investment for its participation in the CARS program.

Mitsubishi and Toyota Motors Philippines have qualified for the CARS perks, and aim to produce 200,000 units of each enrolled car in six years.

Toyota has invested 3.22 billion pesos under the program to produce the Vios compact, a popular model often used as taxis. The Japanese automaker intends to start local production of the CARS-enrolled units by 2018 and has committed to producing 230,000 units in six years.

Philippine auto sales last year reached 321,532 units, up 19% year on year as an expanding middle class and low interest rates drive one of Southeast Asias fastest-growing car markets.