Mitsubishi Lancer production in the Philippines will be shifted to Thailand next year following the introduction of a new model and the implementation of the Asian Free Trade Agreement which reduces import tariffs by 5% on cars shipped within ASEAN countries.

The Philippine plant produces passenger cars, multipurpose vehicles and pickup trucks with the Adventure accounting for 80% of the build.

Lancer production was reduced following the 1990s economic crisis and, even though Mitsubishi has 20% market share, sales have declined 50% since peaking some years ago and the company is not expecting a recovery soon.

Ford has also recently rationalised the assembly of various vehicle lines in the ASEAN region.