Some international businesses have learned the hard way that China is a market that is becoming more competitive since major players in the sector are observing a decline in demand. For Mitsubishi, the situation is very dire; in fact, it appears that the company has decided to stop local manufacture in the nation with the largest population. According to Nikkei Asia, the business intends to stop investing in the regional joint venture with the Guangzhou Automobile Group. GAC Although sales of Mitsubishi Motors, a joint venture between the two businesses, peaked in 2018 with 140,000 units, the company was created in 2012. Deliveries to consumers fell to 38,550 units in 2018, which is around 60% fewer than in 2021. The plant in the Human province stopped operating in March 2023 and Mitsubishi has apparently no intentions to resume operations.
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The plant won’t be shut down since GAC will probably use it to make electric vehicles. The joint venture is owned by the Chinese manufacturer to the tune of 50%, with Mitsubishi Motors holding the remaining 30%. The trading firm Mitsubishi Corp. owns the remaining 20%. Nikkei Asia reports that the two Mitsubishi firms are withdrawing their investments, while GAC Mitsubishi will continue to operate as a corporate entity.
According to reports, the money would be used to expand operations in Southeast and Oceania, which account for around a third of total yearly sales. Japanese automakers had a market share of 18.3 percent in 2022, down 2.8 percent from the previous year. Mitsubishi is not the only Japanese brand in China that is experiencing declines.
This year, Mitsubishi has been busy in other areas by introducing new goods. In addition to the Xforce small crossover for South Asia, Latin America, the Middle East, and Africa, we’re mostly talking about the new L200/Triton. The business also launched a Delica Mini in Japan and rebadged the Renault Clio as a “new” Colt in Europe.