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Louella Desiderio - The Philippine Star
August 10, 2025 | 12:00am
A man works at a car parts manufacturing facility in Santa Rosa, Laguna.
STAR / File
MANILA, Philippines — The zero tariff concession given by the Philippines to vehicles from the US is expected to have minimal impact on the local automotive sector in the short-term, according to Mitsubishi Motors Philippines Corp. (MMPC).
“I think it’s not going to impact in a short time that much,” MMPC president and CEO Ritsu Imaeda said in a press conference for the launch of Mitsubishi Motors Finance Philippines Inc. (MMFP).
Imaeda said US-made vehicles imported to the Philippines are limited at the moment.
He also said US automotive brands are bringing in their cars to the Philippines from countries like Thailand, which already enjoy zero tariff.
Despite the limited impact seen in the short-term, Imaeda said MMPC would continue to closely watch how the tariffs would affect the domestic market.
“We are trying to investigate all possibilities of how it could impact the market itself,” he said.
The tariff concession granted by the Philippines brings down the levy on imported US automobiles to zero from 30 percent.
The concession was granted as part of negotiations between the two countries on the US reciprocal tariff.
Following the negotiations last month, the US will be imposing a 19 percent tariff on Philippine exports starting Aug. 7. This is lower than the 20 percent rate announced in July, but higher than the initial 17 percent announced in April.
At present, a 10 percent tariff applies to Philippine goods entering the US as negotiations with trade partners are ongoing.
In the same event, Security Bank president and CEO Sanjiv Vohra said MMFP, the joint venture between MMPC’s parent firm Mitsubishi Motors Corp. (MMC) and the bank, would help the partners counter the impacts of the US tariffs.
MMFP offers financial services such as loans and leases to Mitsubishi Motors’ customers in the Philippines to help make their dream of owning a car a reality.
“I think it gives us an opportunity, or at least gives the two partners an opportunity to provide the right financing mix if we need to counter some impact of the tariffs,” Vohra said.
MMFP is also expected to help MMPC increase its share in the local automotive market.
MMC president and CEO Takao Kato said the aim is for MMPC Corp. to achieve a more than 20-percent market share in the country’s vehicle sales.
“In five years, I would like them to target 25 percent or more,” he said.
Latest data from the Chamber of Automotive Manufacturers of the Philippines Inc. and Truck Manufacturers Association showed that MMPC accounted for 19 percent of total vehicle sales from January June.
In particular, MMPC’s total sales reached 44,021 units in the first semester, up by three percent from 42,599 units in the same period last year.
