Mitsubishi Motors sales continue to slump due to the impact of electric vehicles on the Chinese market

Sales of fuel vehicles have been severely impacted by the popularization of electric vehicles in China’s domestic market. Mitsubishi Motors will cease production of its new cars in China from March to May this year. Relevant sources have confirmed that the company plans to extend the suspension of production beyond June, and the specific date for resumption of production has not yet been determined.

Currently in Hunan, a factory cooperated by Mitsubishi and GAC mainly produces SUV models such as Outlander. However, in fiscal year 2022, Mitsubishi's domestic car sales were only about 31,800 vehicles, which was half the number last year. Although Mitsubishi launched the new Outlander in December, its sales have been below expectations.

The continued impact of new energy vehicles in the Chinese market has had an impact on Japanese cars. In fiscal 2022, excluding Mitsubishi Motors, Mazda's domestic sales fell by nearly half, while Nissan's sales fell by 27%.

According to previous reports, Mitsubishi Motors plans to invest 1.4 trillion yen (approximately 705.6 billion yuan) in the research and development and production of electric vehicles (EV) and hybrid vehicles (HV) in fiscal 2030. To cope with the increasing competitive pressure from Chinese and European manufacturers in this field.

According to the editor’s understanding, although the development of the electric vehicle market has brought opportunities to automobile manufacturers, it has also brought huge challenges to traditional fuel vehicle manufacturers. As the popularity of electric vehicles accelerates in the Chinese market, the sluggish sales of traditional fuel vehicles are likely to continue, and automakers need to actively transform to adapt to this change. Mitsubishi Motors' decision to halt production may be a strategic adjustment as it recalibrates its production strategy to adapt to market changes. Still, the company's future development will need to be watched closely as competition in the electric vehicle space intensifies.

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