Mitsubishi raises production target on strong demand for vans, AUVs

MANILA, Philippines - Mitsubishi Motors Philippines Corp. (MMPC) is aiming for a 20-percent hike in vehicle output this year as it anticipates higher demand for vehicles.

MMPC president and chief executive officer Hikosaburo Shibata told reporters yesterday the firm is targeting to produce between 17,000 and 18,000 units this year, up from 15,000 last year.

 “We expect about 25-percent increase in total demand so we will increase production for current models,” he said.

MMPC vice president for marketing services Froilan Dytianquin told reporters demand for locally assembled Mitsubishi vehicles L300 and Adventure has been rising as shuttle operators are replacing their older units.

The L300 and Adventure are currently being assembled in MMPC’s plant in Cainta, Rizal.

Dytianquin said the firm is building up the inventory of the L300 and Adventure in preparation for the shift of manufacturing operations to Laguna.

 “We are building stock to offset shutdown of plant in Cainta. Shutdown will begin in November,” he said.

As part of Japan’s Mitsubishi Motor Corp.’s mid-term plan to expand sales and production capacity until 2016 in Southeast Asia, MMPC acquired the 21-hectare manufacturing plant of the local unit of Ford Motor Co. in Laguna in March.

The plant was previously used by Ford for vehicle assembly until the close of 2012 when it shutdown manufacturing operations citing weak local demand and small supply base for vehicles.

The newly acquired plant has a production capacity of 50,000 units per year, which can be further expanded to 100,000 units.

Shibata earlier said MMPC is planning to assemble a new vehicle model at its newly acquired plant as well as studying the possibility of exporting to other markets.

He said the new vehicle model to be locally assembled will depend on the automotive industry road map to be released by the government as well as market demand.

MMPC is aiming to sell more than 50,000 units this year.

In 2013, sales reached 43,176 units, representing a 20-percent share of the market.