Mitsubishi Mulling Ending Production In China

Mitsubishi Motors Corp. is reportedly considering ending car production in China, according to sources familiar with the matter.

In an effort to counter its sluggish sales, the Japanese automaker even introduced a new hybrid version of its flagship Outlander sport utility vehicle for the Chinese market in December. I Photo: Mitsubishi

This decision comes as the Japanese automaker faces declining sales amidst a rapid transition to electric vehicles (EVs) in the country, as reported by Kyodo News.

Mitsubishi Motors had previously ceased production in China in March due to declining sales and the increasing prominence of local brands. Now, the company intends to redirect its resources towards the Southeast Asian market, as per the sources.

In China, Mitsubishi Motors had primarily been manufacturing gasoline-powered vehicles at a factory located in Hunan Province through a joint venture with Guangzhou Automobile Group.

Notably, this factory was the sole Mitsubishi Motors production facility in the country, as also reported by Mainichi Japan.

In an effort to counter its sluggish sales, the Japanese automaker even introduced a new hybrid version of its flagship Outlander sport utility vehicle for the Chinese market in December.

However, this move proved insufficient in light of the rapid shift to all-electric cars and the increasing market share of local brands in China, which has now become the largest EV market globally, according to the sources.

While Mitsubishi is engaged in discussions with its local production partner, no formal decision has been reached on this matter, as confirmed by a company official. Notably, other Japanese automakers like Nissan, Mazda, and Hino Motors are also grappling with the competitive challenges posed by EVs.

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