Shulou(Shulou.com)11/24 Report--

Thank you, Mr. Air, a netizen of CTOnews.com, for your clue delivery! CTOnews.com Sept. 27, according to the Nikkei News, Mitsubishi Motors has decided to stop production in the Chinese market, and the company has begun final exit negotiations with GAC GROUP, a Mitsubishi partner in China.

Mitsubishi's sales in the Chinese market have reportedly been low due to the popularity of electric cars and the rise of local brands. Other Japanese automakers are also struggling and may re-examine their strategies in the Chinese market.

▲ Tuyuan GAC-Mitsubishi official website, as at present, GAC GROUP holds a 50% stake in GAC-Mitsubishi, Mitsubishi Motors holds a 30% stake, and Mitsubishi Corporation holds a 20% stake. With the divestment of Mitsubishi Motors and Mitsubishi Corporation, GAC GROUP is expected to use the Hunan plant to produce electric cars.

It is reported that Mitsubishi sold 38550 vehicles in China in 2022, down about 60 per cent from the previous year. In an effort to reverse this trend, the company launched a hybrid Olander SUV in China last fall, but sales fell short of expectations.

According to MarkLines, a research firm, passenger car sales in China reached 23.56 million in 2022, of which Chinese brands accounted for 50.7 per cent, up 5.2 per cent from the previous year. In contrast, the market share of Japanese car companies was 18.3%, down 2.8% from the previous year.

CTOnews.com had previously reported that Mitsubishi Motors had announced that it would stop production of new cars in China between March and May this year due to the low sales of fuel vehicles in China due to the popularity of electric vehicles. Mitsubishi Motors CEO Takao Kato said at a financial results conference in July that structural reforms were needed in the undersold Chinese market, but had not yet agreed with partner GAC GROUP on the direction of the reforms.

Related readings:

Mitsubishi Motors CEO says sales in China are low and structural reforms are necessary.

"(updated) GAC-Mitsubishi Motor sales do not meet expectations and production will be temporarily suspended, and personnel structure will be optimized."

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.