Mitsubishi shelves SE Asia export plan

Mitsubishi Motors Philippines Corp. (MMPC) is putting on hold an initial plan to begin exporting vehicles to the Southeast Asian market this year as it needs to make more preparations.

“Maybe not this year. It may be difficult because lots of preparations are required and we are still working on that,” MMPC president Mutsuhiro Oshikiri said when asked if the company could start exporting this year.

He said a study is being undertaken now on the possible export of the Mirage G4 and the L300 which are being assembled at the company’s plant in Sta. Rosa in Laguna.

“If we rely on the Philippine economy, if the Philippine economy is down, (it would be) very difficult to keep the factory, maintain the people…We need export for stable production,” he said.

The automotive industry suffered a decline in sales last year as higher taxes on vehicles under the tax reform program weakened demand.

Sales of the Chamber of Automotive Manufacturers of the Philippines Inc. reached 357,410 units last year, 16 percent lower than the 425,673 units in 2017.

Full-year sales of the Association of Vehicle Importers and Distributors Inc. also declined by 17 percent to 88,700 units last year from 106,285 units in 2017.

Alvin Dalida, first vice president for sales and marketing at MMPC said for the Philippines to export the Mirage G4 or the L300, it would have to be more competitive in terms of quality and cost against other countries producing the same models.

Apart from the Philippines, Thailand assembles the Mirage G4, while Indonesia produces the L300.

“It’s not very feasible to have multiple manufacturing facilities producing the same model and selling it in the same region. So, as in any other manufacturing company, they would like to see where it’s more efficient and productive to set base for a specific model,” he said.