Mitsubishi announces exit from the Chinese automotive industry

Mitsubishi is set to end the production of its collaborative vehicles in China and transfer its ownership stake to Guangzhou Automobile Group (GAC). The Japanese automaker, which established the joint venture in 2012, will transition into a fully-owned subsidiary of GAC. This serves as another reminder of the dominant influence that domestic brands wield in the Chinese market.

The joint venture had previously manufactured various models, including the ASX, Outlander, Pajero, Eclipse Cross, Eupheme, and the China-exclusive Airtek EV. However, the plant's focus will now shift towards producing vehicles under GAC's Aion brand, commencing in June 2024. This shift is expected to provide Aion with the capacity to manufacture up to 600,000 vehicles annually, according to GAC.

In an official statement, the company expressed its determination to undergo a "fundamental" overhaul of its strategy in response to the fiercely competitive market, particularly in the face of declining sales. 

Shortly following this declaration, Mitsubishi unveiled its intention to commit a substantial sum of up to €200 million, or around P12 billion Philippine Pesos to Renault's recently established electric vehicle initiative, Ampere. As part of this collaboration, Mitsubishi will acquire a range of electric vehicles (EVs) crafted and manufactured by Ampere, which it will then market under its own brand. This strategic move is aimed at maintaining cost efficiency in Mitsubishi's development efforts.

As per Nikkei Asia's report, Mitsubishi plans to introduce its new EVs in both the European and Southeast Asian markets. This strategic expansion will also grant Mitsubishi valuable insights into the prevailing trends within these key EV markets, contributing to its future growth and development. Early on in the year, we also reported that alliance partner Nissan has invested in Ampere as part of its refreshed partnership with Renault. In a report conducted by Carscoops, further development with the partnership will happen sometime in the near future according to Renault chairman Jean-Dominique Senard.