Mitsubishi Motors is reported to be planning to withdraw from the Chinese market. Another traditional car company is falling?

Is Mitsubishi Motors Really Pulling Out of the Chinese Market? Yet Another Traditional Car Company on the Decline?

【PhoneAuto News】Recently, PhoneAuto learned that Mitsubishi Motors from Japan has decided to cease production and sales in China, which means Mitsubishi Motors will officially exit the Chinese market.

In late September, domestic media reported that Mitsubishi Motors had decided to withdraw from automobile production in China, and the company had begun final negotiations with GAC Group regarding the exit. However, at that time, Mitsubishi spokesperson Tetsuji Inoue stated, “The report is not an official announcement from the company. We are still in discussion with our shareholders and no decision has been made.”

In recent years, Mitsubishi’s development in China has been unfavorable. In January and February, total sales for GAC Mitsubishi were only 1498 vehicles, a 79.86% decrease compared to the same period last year. Starting in April, GAC Group no longer separated the production and sales data for GAC Mitsubishi, combining it with GAC Chuanqi, GAC Hino, and GAC BYD New Energy buses under the “other” category. In September, the sales data for this category showed only 875 vehicles, with the majority of sales still coming from GAC Chuanqi.

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Furthermore, in July, it was suspected that an employee from the GAC Mitsubishi Training Center posted a screenshot on a social media platform, which showed an announcement letter addressed to all GAC Mitsubishi employees on July 12. The letter declared that GAC Mitsubishi had entered a temporary shutdown phase in June due to financial difficulties and would optimize its workforce according to the actual situation.

At that time, GAC Group stated that it was “making every effort to promote the company’s relief and transformation work. GAC Mitsubishi will optimize its workforce in accordance with the actual situation and in compliance with the law, and make every effort to safeguard the legitimate rights and interests of its employees.” Subsequently, Mitsubishi Motors CEO Takao Kato stated at a financial performance conference that it was necessary to implement structural reforms in the struggling Chinese market. However, it seems that there has been no significant improvement. If Mitsubishi Motors truly exits the Chinese market, it is highly likely to be related to market performance.

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