5-Percent Price Hike Looms for All Mitsubishi Vehicles
Mitsubishi Motors Philippine Corp. (MMPC) announced recently its plans to issue a 3 to 5-percent price increase across its catalog. The reason for the increase, the Japanese vehicle manufacturer claims, is the Philippine peso’s deteriorating value against the U.S. dollar.
“As much as MMPC would like to maintain the prices of its vehicles at their current prices, MMPC is constrained to adjust its prices since the severe forex environment has raised significantly the importation costs of these vehicles,” the car manufacturer said in a press release.
MMPC says the increase will be implemented starting January 2017, and will affect all Mitsubishi and Fuso models, so if you have plans to buy a new Mitsubishi car/pickup or Fuso bus/truck, it’s best to do it soon. A 3 to 5-percent increase equates to about a Php 10,000 to Php 20,000 addition to the price tag of a Mitsubishi or Fuso vehicle.
A Silver Lining
Despite the impending increase, there’s some good news to be had, as MMPC announced that it will move ahead with its plan to produce the Mirage and Mirage G4 locally beginning 2017, which could bring the initial price of these vehicles down. The company also recently awarded 25 certificates to local suppliers that licenses them to build components for hatchback and sedan models.
To date, the L300 and Adventure are the only Mitsubishi models made locally. MMPC imports the Mirage, Mirage G4, Strada, and Montero Sport from Thailand. The Lancer, Pajero, ASX, and Fuso models are all imported from Japan.
The Devaluation of the Philippine Peso
MMPC’s announcement comes at the heels of the Philippine peso hitting record-lows versus the U.S. dollar in recent months. The Philippine peso broke through the P50-per-dollar barrier last November 24 during business day, before closing at P49.98. The last time the peso breached that territory was a hair over a decade ago in Oct. 23, 2006, when it closed at P50.06.
Froilan G. Dytianquin, MMPC first vice-president for marketing, said in a text message to reporters that the company used a foreign exchange rate of Php 47.00 to $1 and ¥101 to arrive at the price hike increase percentage. The Philippine peso has been trading at an average of Php 47.00 for the early to middle part of the year. It dropped to around Php 49.00 starting November.
Mitsubishi and DOF’s New Excise Taxes
The hike coincides with the Department of Finance’s goal to increase automobile excise taxes by 2018, which will see the tax for entry level cars Php 600,000 and below go up from 2 percent to 5 percent, For luxury vehicles costing more than Php 2.1 million, taxes are set to go up by 60 percent. Mitsubishi, along with the Department of Trade, expressed their opposition to the new automobile tax plan, saying it requires further review and renegotiation.
Prices to Expect
According to the MMPC’s current price list, the cheapest passenger car in their lineup is the Mirage GLX subcompact hatchback with 1.2-liter engine and manual transmission, listed at Php 555,000. The most expensive passenger car is the ASX GSR with 2.0-liter engine and CVT, costing Php 1,265,000. With the 5-percent increase, these vehicles will cost Php 582,750 and Php 1,328,250, respectively.
As for the light commercial vehicles category, the L300 Deluxe Cab Chassis goes for a low Php 595,000, while the Pajero GLS automatic transmission with 3.2-liter diesel engine costs Php 2,755,000. With the 5-percent added, the L300 will then cost Php 624,750, while the Pajero becomes Php 2,892,750.
Regarding MMPC’s Fuso offerings, a Fuso Canter FE71 4-wheeler with 3.9-liter engine and manual transmission goes for Php 1,150,000, while the 34-seater Rosa Bus with 3.9-liter diesel engine can be had for Php 4,005,000. After the increase, the Canter’s price rises to Php 1,207,500, while the Rosa Bus goes up to Php 4,205,250.
Shop Now and Save
“New vehicle buyers are advised to take advantage of the current prices and the on-going promotions for Mitsubishi vehicles before the foreseen price hike,” Mitsubishi’s press release said in closing.
Carmudi’s inventory houses plenty of new and used Mitsubishi vehicles for sale. With less than a month to go before the year ends, now’s the time to check out our inventory and shop for a Mitsubishi car. To see what we have, click here.