Mitsubishi Motors Slashes 2024 Profit Forecast By A Whopping 76%

In its third quarter results presentation, Mitsubishi Motors revised its net profit for the fiscal year ending March 2025, lowering it by 76%. 

In its third-quarter financial results presentation held recently, Mitsubishi Motors elected to adjust its nett profit forecast for the financial year ending March 2025 to ¥35 billion (approx. RM1.001 billion). This marks a massive reduction of 76% from its previous forecast issued on May 2024.

The revision stems from lackluster sales in the wholesale sector, marketing expenses in North America, and increasing supplier costs due to inflation, reports Nikkei Asia. Concurrently, the tri-diamond marque adjusted its sales target to just 848,000 units from its initial 896,000 units figure.

It is worth noting still that the revised sales target stands higher than the 815,000 units the marque shifted in the previous year. Critically though, much of the marque’s losses comes from its largest market region – Southeast Asia (ASEAN).

The revision stems from lackluster sales, inflation-borne supplier cost hikes, and marketing expenses in North America, and this also prompted the firm to lower its sales target to just 848,000 units.

Specifically, Mitsubishi acknowledged that it is struggling in both Thailand and Indonesia – massive markets where the marque proved successful during the pre-pandemic years. “There was a demand of one million vehicles annually in Thailand in the past,” notes CEO Takao Kato.

The exec continued and said, "It has not recovered significantly after the COVID-19 pandemic, decreasing even more rapidly in the financial years of 2023 and 2024 due to the high level of household debt." He also acknowledged Thailand’s unfavourable exchange rates as a factor.

Moreover, the situation in its Thailand operations also prompted Mitsubishi to restructure its offices in the region, which included the early retirement of 300 employees. Despite so, Kato remained optimistic and noted some of the key strengths Mitsubishi still holds.

Mitsubishi remains optimistic as it reckons one of its key strengths lie in its product range that's focused on pick-up trucks - the firm's latest third-gen Triton model pictured.

CEO Takao Kato also dismissed reported rumours saying Mitsubishi was "not keen" on the impending Nissan-Honda merger.

"Our strengths are in plug-in hybrids, [Asia-Pacific] market presence, and a product line-up focused on pick-up trucks. We are looking at how these could be utilised and what kind of support we can expect in the North American market and developing auto intelligence – both of which we are not so strong in," adds Kato further.

On the subject of the Japanese marque’s possible involvement in the impending Nissan-Honda merger, Kato also took the opportunity to dismiss reported rumours that the tri-diamond marque was “not keen” in participating.

Instead, the exec says it’s unlikely that Mitsubishi “will not be involved at all.” Kato also adds that the firm will wait and see how the merger plays out before making any decision about how and when to get involved.