Mitsubishi Motors, one of Japan’s leading automotive manufacturers, is significantly increasing its efforts to tap into the growing automotive market in the Philippines. As part of its broader strategy to expand in Southeast Asia, the company is doubling down on production, sales, and after-sales services in the Philippines, driven by a combination of local economic growth, rising consumer demand, and government incentives.
In recent years, the Philippines has emerged as one of the most promising automotive markets in Southeast Asia. According to the Philippine Statistics Authority (PSA), vehicle sales in the Philippines grew by 20.7% in 2023, reaching a total of 400,000 units, compared to 332,000 units in the previous year. This growth trend is expected to continue, with the Philippine automotive industry forecasting sales to exceed 500,000 units by 2025, representing a significant opportunity for global car manufacturers.
For Mitsubishi Motors, the Philippines presents a unique combination of factors that makes it an increasingly attractive market. The Philippines has a young and expanding population, a rapidly growing middle class, and a stable economic environment, which are all crucial drivers of automotive demand.
The Philippine economy has shown remarkable resilience in the face of global challenges. The country’s GDP grew by 7.6% in 2023, driven by robust consumer spending, strong remittances from overseas Filipino workers, and increased infrastructure investments. Economic growth is expected to remain strong, with forecasts predicting GDP growth of 6.5% in 2024, making it one of the fastest-growing economies in the Asia-Pacific region.
This economic boom is fueling a burgeoning middle class, with more Filipinos moving into higher-income brackets and thus becoming potential buyers of cars. According to the Philippine Chamber of Commerce and Industry (PCCI), the number of households in the middle-income bracket has increased by 18% over the last five years. As the purchasing power of Filipinos rises, demand for personal vehicles, particularly in urban areas like Metro Manila, Cebu, and Davao, is growing rapidly.
Mitsubishi Motors’ increased focus on the Philippines market comes as part of its broader regional strategy. The company has long viewed Southeast Asia as a key growth area, with the Philippines representing one of the most strategic markets due to its growing consumer base and geographic location. Mitsubishi is actively expanding its model offerings and reinforcing its brand presence in the country.
Mitsubishi Motors has recently invested heavily in local production in the Philippines, recognizing the need to increase its production capacity to meet rising demand. In 2024, the company expanded its assembly plant in Sta. Rosa, Laguna, a move that will boost its production capacity by 30%. This plant will play a key role in producing popular models such as the Mitsubishi Xpander, Mirage, and the L300 van, which are well-suited to the demands of Filipino consumers.
Mitsubishi Motors is also investing in aggressive sales and marketing campaigns in the Philippines, with a particular emphasis on reaching new customers in emerging urban markets. The company is leveraging its strong dealer network across the country, including in key areas like Metro Manila, Cebu, and Davao, where demand for automobiles is growing rapidly.
In addition to traditional sales channels, Mitsubishi is enhancing its digital marketing efforts. The company has significantly increased its presence on digital platforms, with a focus on targeting younger, tech-savvy consumers who are increasingly turning to online platforms for research and vehicle purchases. Mitsubishi’s digital presence includes social media campaigns, influencer partnerships, and virtual car shows, which are helping to boost brand visibility among the country’s growing online consumer base.
By mid-year, the Philippine market recorded 226,279 units, reflecting an 11.8% increase over the same period in 2023. This growth trend underscores the strength of the automotive sector as it recovers and expands, with each month surpassing sales targets set by industry analysts.
Comparing sales in the Philippines with Indonesia and Malaysia reveals an interesting regional snapshot. In Indonesia, the largest market in Southeast Asia, automotive sales reached 482,000 units by mid-2024, marking a 15% increase year-over-year, supported by robust demand for family vehicles and the rise of electric vehicles (EVs). Malaysia also saw a strong performance with 352,000 units sold, largely driven by local favourites like Perodua and Proton, along with a 12% growth in year-over-year sales.
The Philippines, while slightly smaller in volume than Indonesia and Malaysia, still shows remarkable potential with its 226,279 units sold by June 2024, a figure that aligns with growth projections made by the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI). As the Philippines targets the 500,000-unit mark by the end of 2024, the steady growth positions it as a rising star in the ASEAN automotive market.
As of 2024, three automotive brands have led the surge in sales and contributed significantly to the growth of the Philippine market:
- Toyota:Dominating the Philippine market with 45% market share, Toyota has sold approximately 101,000 units in the first half of 2024. Models like the Toyota Vios and Toyota Innova are especially popular, noted for their durability and high resale value.
- Mitsubishi:With a solid 16% market share, Mitsubishi sold around 36,000 units in the Philippines, with top models like the Mitsubishi Mirage and Xpander contributing to its success. The brand’s focus on affordability and reliability continues to resonate with Filipino consumers.
- Nissan:Capturing 10% market share with about 22,000 units sold, Nissan has seen increased interest due to its commitment to innovation and EV models, particularly the Nissan Leaf, which has gained popularity among eco-conscious buyers.