In a significant move, Mitsubishi has officially withdrawn from the Chinese market, unable to keep pace with its competitors. The decision is believed to have been influenced by China’s growing demand for electric vehicles (EVs) and Mitsubishi’s reluctance to embrace them.
Mitsubishi once enjoyed immense popularity in China, with impressive sales of 134,500 vehicles in 2019 and ambitious plans for upcoming models, primarily plug-in hybrids. However, the tide quickly turned as sales took a steep nosedive. In 2022, the Japanese automaker managed to sell a mere 34,500 units, as the demand for fully electric vehicles skyrocketed in the Chinese market.
Mitsubishi’s solitary all-electric offering, the Airtrek EV, arrived too late and failed to make a significant impact. With its higher price tag compared to rivals, only 515 Airtrek EVs were sold last year.
Japanese automakers, including Nissan, Honda, and Mazda, are also grappling with challenges in China. These manufacturers have witnessed declining sales in recent years. Although Toyota still maintains a strong presence in the Chinese market, its sales experienced a decline in 2022 for the first time in a decade.
Clearly, Japanese automakers must increase their production of EVs and shift away from hybrids to remain competitive in China. Mitsubishi serves as a prime example of the consequences that automakers can face when they become complacent. It is no secret that the aforementioned Japanese companies have lagged behind in the electrification race. Nissan, once revered as an EV pioneer with the Leaf, has also suffered a significant loss in its market share.
The future prospects for Mitsubishi in other markets are now a subject of interest. Surprisingly, the company’s sales are actually on the rise in the United States, mainly due to the successful launch of the new Outlander model. However, Mitsubishi’s plans for EVs pale in comparison to those of most other mainstream manufacturers. The automaker aims to introduce only four new EVs by 2035 and desires all sales to be electric or hybrid by that target date.
