Mitsubishi Motors, a key player in the automotive industry, recently faced significant changes as the world shifts its focus towards electric vehicles. The company made a tough decision to halt production in China, leading to staff layoffs and major implications for its operations.
In the wake of ever-evolving market conditions and with a sense of reluctance, Mitsubishi Motors had to take decisive action. A memo from the management and shareholders acknowledged the challenges and emphasized the need to embrace new energy vehicles. This strategic move to shift towards electric cars is expected to lead the company out of its current predicament.
A representative from Mitsubishi Guangzhou Automobile Group, a trusted partner, confirmed the contents of the memo. All stakeholders involved are committed to optimizing the employee structure during this transition period. Ensuring the legal rights of the affected employees remains a top priority throughout the process.
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Mitsubishi has been a significant player in the Chinese automobile market, achieving impressive annual sales figures. In 2019, the company recorded around 134,500 vehicle sales in China. However, since 2022, the figures have been on a declining trend, with only 34,575 vehicles produced in January and none in April. This represents a significant decrease of 1,530 units compared to previous years.
Even the only Mitsubishi electric SUV available in China, the Airtrek, struggled to gain traction, recording a mere 515 units in sales last year. This decline in demand for traditional fuel-powered vehicles was a clear signal for Mitsubishi to shift its focus towards electric mobility.
Despite the challenges and market turbulence, Mitsubishi Motors remains steadfast in its commitment to new energy vehicles. The company has ambitious plans to produce electric vehicles by the year 2035, indicating its strong belief in the potential of electric cars. To support this vision, Mitsubishi is set to invest a substantial amount of USD 13 billion, paving the way for a greener future.
Mitsubishi is not the only Japanese automotive manufacturer facing declining sales in the Chinese market. Renowned brands such as Nissan, Honda, and Toyota have also experienced a dip in their sales figures over the past two years. These companies are closely monitored as they adapt their strategies to remain relevant and competitive in the evolving landscape of the automotive industry.
