Mitsubishi China Market: Contrary to swirling rumors, Mitsubishi Motors confirmed its steadfast commitment to the Chinese market despite plummeting sales, amidst intensifying competition in the auto sector. CEO Takao Kato clarified at a recent press conference, “We are yet to make a decision about exiting the market, but it’s undeniable that we need a robust strategy to navigate the challenges in China.”
In March, production was halted at Mitsubishi’s plant in Changsha, Hunan province, sparking speculation about the firm’s future in China. These conjectures escalated when their joint venture partner, Guangzhou Automobile Group (GAC), excluded Mitsubishi’s sales data in their April reports. A GAC representative clarified this was due to Mitsubishi’s relatively minor contribution to its total production.
Reaffirming its commitment, Mitsubishi announced the Changsha plant is set to resume operations in June, despite ongoing adversity. Kato admitted that Mitsubishi’s Outlander has been struggling against local competitors, including Warren Buffett-backed BYD, leading to a drop in retail sales to 32,000 units in Q3.
Facing these realities, Kato confirmed, “We’re in active discussions with our partners in China to chart our way forward. We’re closely monitoring the situation.”
KNOWLEDGE: Monsoon Care for Your Windshield Wipers
