Japan's Mitsubishi Motors Corporation (Mitsubishi Motors) is exploring the possibility of producing hybrid vehicles in the Philippines amid rising domestic sales.

According to Mitsubishi Motors President and CEO Takao Kato, hybrid vehicles are currently viewed as a feasible option for the Philippines.

He stated on 1st August that it may still be too early to introduce battery electric vehicles (BEVs) to the local market.

BEVs operate solely on battery power and require external charging, whereas hybrids combine an internal combustion engine with a battery pack and are presently the most commonly sold type of electric vehicle in the country, largely due to the limited availability of public charging infrastructure.

Kato noted that the company is considering local production of hybrid vehicles at its assembly facility under Mitsubishi Motors Philippines.

However, he acknowledged the difficulty posed by the absence of a domestic supply chain.

At present, there is no local supplier of hybrid component systems in the Philippines, Kato stated.

Mitsubishi Motors is continuing efforts to expand its hybrid vehicle offerings and production. Following recent withdrawals from electric vehicle initiatives in China and the Ampere project with Renault in Europe, Kato indicated that the company plans to independently develop its hybrid systems in Asia.

Nonetheless, Kato noted that partnerships with companies such as Nissan and Renault may still be used in selected regions, including Europe.

Kato visited the Philippines for the launch of Mitsubishi Motors Finance Philippines (MMFP), a joint venture with Security Bank.

MMFP President and CEO Satoshi Nakano stated that the company aims to secure more than 20% of the domestic vehicle financing market.

Kato further added that the target should be a market share of 25% or higher within five years.

Security Bank President and CEO Sanjiv Vohra said the venture would rely on existing consumer confidence in both Mitsubishi and the financial institution.

Security Bank Executive Vice President Rahul Rasal noted that the bank would no longer directly manage Mitsubishi transactions, now that MMFP is operational.

He explained that this would allow the bank to focus on product offerings, processes, and platforms designed for Mitsubishi customers.