The Philippines is set to manufacture its first locally produced hybrid electric vehicles (HEVs) following a planned investment by Mitsubishi Motors Corporation, the Department of Finance (DoF) said.

In a statement, Finance Secretary Frederick Go said the move could upgrade the country’s position in the global automotive value chain, noting its potential to transform the Philippines from a largely assembly-based industry into a higher-value manufacturing hub.

Landmark investment

“This is a landmark investment that will redefine the future of our automotive industry. And the even more exciting possibility is that we could be an exporter of hybrid cars,” he said.

The DoF said the project will be undertaken by Mitsubishi Motors Philippines Corporation at its existing plant in Santa Rosa, Laguna, where the company plans to introduce hybrid production capabilities alongside its current vehicle lineup.

The initiative is aligned with the government’s broader push to develop an electric vehicle ecosystem, supported by policies such as the Electric Vehicle Industry Development Act and the proposed Electric Vehicle Incentive Strategy (EVIS), which aim to attract investments and encourage the adoption of cleaner transport technologies.