Japan's Mitsubishi Motors is examining the possibility of producing hybrid vehicles in the Philippines in response to increasing domestic sales.

Mitsubishi Motors President and CEO Takao Kato stated on 8th August that, for the time being, hybrid vehicles appear to be the most suitable option for the Philippines.

He further added that it is still too early to introduce battery electric vehicles (BEVs) in the country.

BEVs operate solely on battery power and require charging, whereas hybrids combine an internal combustion engine with an electric motor and a battery pack.

Hybrids remain the leading type of electric vehicle in the Philippines, largely due to the limited availability of charging infrastructure.

Kato explained that the company is considering hybrid vehicle production at its local assembly plant under Mitsubishi Motors Philippines, though he acknowledged the challenge of establishing a domestic supply chain, noting that the Philippines currently has no suppliers for hybrid component systems.

At a global level, Mitsubishi Motors is aiming to expand its hybrid offerings and production.

Following recent withdrawals from electric vehicle ventures in China and Renault's Ampere project in Europe, Kato confirmed that the company intends to develop its hybrid systems independently, particularly within Asia.

Partnerships with companies such as Nissan and Renault may still be utilised in certain markets, 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 announced that the company is targeting more than a 20% share of the domestic financing market. Kato added that the objective should be to achieve 25% or more within five years.

Security Bank President and CEO Sanjiv Vohra stated that the venture is based on customer confidence in Mitsubishi Motors and Security Bank.

Security Bank Executive Vice President Rahul Rasal further explained that the bank would no longer directly service Mitsubishi transactions, as MMFP would now assume this responsibility.

He further added that the arrangement enables the bank to focus on products, processes, and platforms designed for Mitsubishi customers.