Amid increased competition in the auto industry and its glut of brands and models, it doesn’t hurt at all to, well, call a friend.
That is veritably what Mitsubishi Motors Corporation (MMC) did as it forged a joint venture (JV) with Security Bank Corporation (SBC). Formally established in January this year, Mitsubishi Motors Finance Philippines, Inc. (MMFP) is designed to “offer financing solutions across 67 dealerships nationwide,” according to the company’s release. This should facilitate the quicker acquisition of the brand’s vehicles, as around 70 percent of auto buyers avails of financing, according to Security Bank President and CEO Sanjiv Vohra in a press conference following the formal launch of the JV last week in Makati.
This is expected to build upon and enhance the marque’s sales performance here. Last year, Mitsubishi sold 91,639 units, marking 12-percent year-on-year growth – pushing its total market share to 19.5 percent, per Chamber of Automotive Manufacturers of the Philippines and Truck Manufacturers Association Consolidated data. In town for the launch, Mitsubishi Motors Corporation President and CEO Takao Kato said the JV is expected to help MMPC crack the 20-percent barrier “as a first step,” then reach 25-percent share in five years.
“This nationwide rollout marks a key milestone in Mitsubishi Motors’ mid-term business plan, Challenge 2025, which positions ASEAN as a core growth region — with MMFP playing a strategic role in driving that expansion in the Philippines. With a steadily growing population and strong economic fundamentals, the Philippine automotive market is on a clear growth path,” the company said in a release.
The new firm will be helmed by Satoshi Nakano as president and CEO. Mitsubishi Motors Corporation gets a controlling stake (51 percent) with the remainder (49 percent) taken by Security Bank Corporation.
Vohra revealed in a Q&A session with the media that Q1 2025 auto loans for Security Bank grew 52 percent year-on-year. “We do expect our trend to continue,” he declared. “However, as you would envisage, as the joint venture had been formed… We will be moving our Mitsubishi Motors car financing over (to it).”
The Security Bank head considers the partnership with Mitsubishi Motors a “strategic milestone”
and an opportunity to deepen the relationship and partnership the country’s number-two car brand. “More importantly, it expands our footprint in the auto finance market. We have had very strong growth in auto financing in the last couple of years.”
Replying to a question from this writer on why and how the two organizations decided to enter a JV, Kato said, “We found that SBC is a really good bank (that) we can trust very much.” He shared an experience working with “some other bank” he did not name, which was “a bit reluctant to give loans for Mitsubishi Motors… Security Bank’s behavior is very good for us.”
Meanwhile, Mitsubishi Motors Philippines Corp. President and CEO Ritsu Imaeda, in response to the same question, said, “In terms of the cooperation with Security Bank, we had considered this for years.” It also makes sense, he added, because Mitsubishi (through its global bank MUFG) has a link with SBC. MUFG acquired a 20-percent stake in SBC in 2016 for P36.9 billion.
“In this regard, we already have a very strong, hand-in-hand partnership,” Imaeda underscored. “I strongly believe that this will (contribute to our success) in the Philippines to (present) very good offers to our customers.”
As for its relationship with other banks in light of the enhanced relationship with SBC? The MMPC head insisted, “We, of course, are not going to dominate 100 percent… We also want to have good partnerships with other banks as well. So, we’ll try to manage it so we can have a healthy split because all of the other banks are also crucial partners.”
“I think that I made the right decision that I chose Security Bank,” declared Kato with a smile.
For his part, SBC’s Vohra maintained that it helped make the decision easier because of the existing relationship with the Mitsubishi UFJ Financial Group, Inc. “It was really a no-brainer for us to show our enthusiasm and commitment to Mitsubishi Motors, that we are the best partners that they can have. We complement each other. So clearly, Mitsubishi is a very trusted brand in the Philippines (with) a long-standing presence. It has held on to its position quite strongly. And Security Bank has been serving Filipino customers now for over 74 years. We’ve shown our financial expertise, our innovation, which will match the craftsmanship and innovation that Mitsubishi Motors brings to the market.”
From a lending perspective, added SBC Executive Vice President and Retail Banking Segment Head Rahul Rasal, MMFP will allow a more customized experience in terms of product, process, and platform. “We will now be able to focus in terms of products, the process that is required, and leverage our platforms specifically for the needs of the Mitsubishi buyers… and our correspondent dealer partners (who) have specific requirements. Through this vehicle, we will be able to customize and serve without losing focus or taking away importance of the other brands that we service.”
He concluded, “So, I think as a combined entity, we will be able to provide the right solutions for the Filipino customers in the coming years.”
