By Justine Irish D. Tabile, Reporter
COMMERCIAL vehicle models are expected to drive Mitsubishi Motors Philippines Corp.’s (MMPC) sales and help the company achieve its target of 20% market share this year.
“In terms of sales volume, our top model right now is the Xpander. It is a light commercial vehicle because everything more than the sedan is classified as a commercial vehicle,” MMPC President and Chief Executive Officer (CEO) Ritsu Imaeda said Friday.
He said the Xpander, a multipurpose vehicle (MPV), accounted for over 20% of the company’s sales in the first half.
He said he expects the Xpander to remain MMPC’s top-selling model until the end of the year.
“We think Xpander is a great match to the market’s needs, especially for first-time car buyers who want to have a seven-seater car for the family that is pretty affordable and with good quality,” he said that is going to support our brand,” he added.
MMPC’s other top-selling models include the Mirage subcompact car, the L300 light commercial vehicle, the Montero Sport SUV (sport utility vehicle), the Triton pickup, and the Xforce SUV.
In the first half, MMPC ranked second in terms of market share, accounting for 19.06% of total industry sales, according to a joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA).
The company posted 3.3% year-on-year growth in sales to 44,021 units in the first six months.
This year, Mitsubishi Motors Corp. President and CEO Takao Kato said that he would like MMPC market share to top 20%.
He also expects to increase this to 25% in five years with the help of the recently-launched Mitsubishi Motor Finance Philippines, Inc. (MMFP).
“We remain committed to the country as one of our most important markets. Through collaboration with MMFP in financing services and MMPC in local production and sales, we will continue to grow and serve our customers with excellence,” Mr. Kato said.
On Friday, Mitsubishi Motors and Security Bank Corp. launched their MMFP joint venture (JV), which will offer financing solutions across 67 dealerships nationwide.
“By establishing MMFP, Mitsubishi Motors deepens its long-standing commitment to grow in the Philippine market, and through MMFP we will make sure that more and more Filipinos get life-changing opportunities that mobility can offer,” MMFP President and CEO Satoshi Nakano said.
Security Bank President and CEO Sanjiv Vohra said the partnership will help expand the bank’s footprint in auto finance.
“We have had very strong growth in auto financing in the last couple of years. I think our loan growth last year, 2024, was over 50% in terms of auto loans alone. However, through this JV, we expect the partnership to help us become a preferred financier for Mitsubishi Motors vehicles,” he said.
“Our objective is to enable Mitsubishi Motors to achieve their goals through providing innovative financing options and flexible payment options to get the kind of market share that Mitsubishi Motors is aiming for,” he added.
“Now that you have a joint venture, which is going to finance Mitsubishi Motors, it will allow both partners to be able to counter the impacts of tariffs, if any, through the financing options,” he said, referring to the expected entry of more US car models.
He said that customers in the Philippines look at the monthly amortization rather than the price when buying cars.
“I think this gives the two partners an opportunity to provide the right financing mix if we need to counter some impact of the tariffs. The joint venture will assist manufacturers like Mitsubishi Motors in their attempt to counter the tariffs in the market,” he added.
According to Mr. Imaeda, it is still too early to comment on how the agreement will impact the auto industry, but noted that the Philippines currently imports limited volumes of vehicles from the US.
“For instance, the most famous US brand is Ford, right? Their cars are basically coming from Thailand. So would there be any benefit for them?,” he said.
“I think it’s not going to impact in the short time that much or significantly. This is our thinking right now. But we are trying to investigate all the possibilities of how it could impact the market itself,” he added.
