Mitsubishi Motors is exiting the Chinese market by stopping car production there, a decision announced after a recent board meeting and communicated through the company’s press service. The move marks a significant shift in Mitsubishi’s regional strategy as it reconsiders its manufacturing footprint in Asia.
The company will terminate its joint venture with Guangzhou Automobile Group, commonly known as GAC Group. Ownership in the venture will be transferred to GAC, while Mitsubishi and GAC will maintain collaboration to ensure continued after-sales support for customers. In practical terms, this means Mitsubishi will wind down production while still supporting existing buyers through maintenance, parts supply, and service channels that are managed in partnership with GAC’s distribution network. The latest consolidated financial statements for the year ended March 31, 2024 show a loss of 24.3 billion yen for Mitsubishi Motors, underscoring the financial pressures that accompany the strategic shift in China. [citation: Mitsubishi Motors press release]
Mitsubishi notes that the Chinese automobile market has undergone substantial changes over the past two to three years, with the popularity of electric vehicles rising faster than anticipated. The company had attempted to revive sales by introducing a new model in December 2022, but the launch faced delays and production was suspended in March of this year, prompting a broader rethink of the brand’s local operations and long-term positioning. The case illustrates the broader challenges for foreign automakers operating in China as consumer preferences pivot toward electrification and as competitive dynamics evolve amid regulatory and policy developments. [citation: Mitsubishi Motors press release]
In its Chinese lineup, Mitsubishi has offered a range of passenger and SUV models, including the ASX, Eclipse Cross, Outlander, and Pajero, along with the Airtrack electric vehicle. These products reflect Mitsubishi’s traditional emphasis on versatile, practical crossovers and a growing but still selective push into electrification within a market that rewards efficiency, technology, and reliable after-sales support. The company’s exit from manufacturing in China does not erase its presence in the region; instead, it reallocates resources toward core markets and strategic partnerships, while ensuring ongoing service for existing vehicles through the GAC collaboration. [citation: Mitsubishi Motors press release]
Additionally, industry observers have noted that strategic moves like Mitsubishi’s in China often ripple into broader regional dynamics. In related market signals, other manufacturers have also adjusted timelines and product strategies as they navigate China’s evolving EV landscape, balancing local production, import strategies, and after-sales ecosystems. The evolving environment underscores the importance of strong local partnerships and transparent communications with customers, dealers, and suppliers as manufacturers recalibrate their footprints to align with shifting demand, regulatory expectations, and competitive pressures. [citation: Mitsubishi Motors press release]
Previously, there were notices about Chery Motors planning the timing of a new crossover in Russia, which reflects how different automakers manage international product introductions in tandem with regional market conditions. The global auto sector continues to adapt to a mosaic of consumer preferences, logistics considerations, and policy frameworks that shape where and how vehicles are manufactured, sold, and serviced. [citation: Mitsubishi Motors press release]