Mitsubishi Motors Philippines Corp. expressed concerns about possible drastic changes in the local car manufacturing program with the election of a new president next month.
“If there is a new administration, we expect the industry to adjust and slow down, partly because of the changes that may happen. We do not know the impact of these changes,” Misubishi president for marketing Froilan Dytianquin said at the sidelines of the launch of the new Mirage at the Solaire Resort and Casino in Pasay City over the weekend.
“Still were hoping that the new administration will continue the momentum [of the automotive industry],” he said.
Dytianquin said should there be major changes especially in the implementation of the ongoing Comprehensive Automotive Resurgence Strategy program, car companies and the entire industry would be affected, including dealers, suppliers and employees, as well.
“This is something worth reviewing if there is going to be a discontinuation or change in policies. Since the CARS is an EO [executive order], we hope the new administration wil continue the program,” he added.
Mitsubishi expects to double the number of employees during the duration of the CARS program.
It recently announced a company strategy to join the CARS program with initial investments reaching P4.3 billion.
The company plans to bring in more Japanese suppliers to invest in the Philippines with at least seven more firms coming over with local partners.
Once production starts in January 2017, Mitsubishi Philippines will stop importing Mirage units from Thailand.
The company plans to produce both the sedan and hatchback variants of Mirage, while increasing the local content to 70 percent in the final stretch of the six-year CARS program.
Dytianquin said the company would consider exporting locally-manufactured vehicles midway through the program.
Mitsubishi’s sales grew faster than the entire Philippine automotive industry after selling 14,688 units, up 23.8 percent from 11,849 units year-on-year.
The car company noted that industry sales rose 21.6 percent in the first quarter, enabling Mitsubishi to keep its status as the second best-selling brand in the Philippines with a 19.2-percent market share.
The Chamber of Automotive Manufacturers of the Philippines Inc. and Truck Manufacturers Association said in an earlier report members sold 76,479 units in the January-March period, up by 22 percent from 62,882 units delivered a year earlier.
The Association of Vehicle Importers and Distributors, meanwhile said members sold 21,160 units in the January-March period, up 151 percent from 8,434 units sold a year ago.
This means total sales of the automotive players, consisting of Campi, TMA and Avid members, reached 97,639 units in the first quarter, up 36.9 percent from 71,316 vehicles sold a year earlier.
Campi said the growth momentum was expected to be sustained in the rest of 2016, as the country’s economic fundamentals remained strong.
