Mitsubishi Motors Will Cease Production In China Amid Sales Slump

Mitsubishi Motors Corp. is considering withdrawing from car production in China, according to Nikei Asia, as the Japanese automaker's sales slump amid the country's rapid shift to electric vehicles.

According to the sources, Mitsubishi Motors, which halted production in China in March due to falling sales and the rise of local brands, now intends to focus its resources on the Southeast Asian market.

In China, the Japanese manufacturer had been producing primarily gasoline-powered vehicles at a factory in Hunan Province as part of a joint venture with Guangzhou Automobile Group. The plant is the country's sole Mitsubishi Motors facility. In December, the Japanese automaker launched a new hybrid version of its flagship Outlander sport utility vehicle for the Chinese market as part of its efforts to reverse its sluggish sales.

According to the sources, this was insufficient due to the faster-than-expected shift to all-electric vehicles and the expanding market share of local brands in China, which is now the world's largest EV market.

According to a company official, Mitsubishi is in talks with its local production partner, but no formal decision has been made.

For the record, Mitsubishi is not the only Japanese company experiencing slow sales in China.

Nissan Motor Co. has reduced its sales forecast for China in fiscal 2023 to 800,000 vehicles from 1.13 million previously, while truck maker Hino Motors Ltd. plans to compile measures to boost sales in the country this autumn.

Mazda Motor Corp. said last month that its sales in China fell 17 percent year on year in the three months ended June, but that it is not considering exiting the market.