Mitsubishi Motors: Completely withdrawing from the Chinese production stage
On July 22, Mitsubishi Motors announced the termination of its joint venture partnership with Shenyang Aerospace Mitsubishi Automobile Engine Manufacturing Co., Ltd. (hereinafter referred to as “Shenyang Aerospace Mitsubishi”) and the cessation of engine business operations at the joint venture company. This marks the complete withdrawal of this Japanese automaker, which has been deeply rooted in China for over four decades, from the Chinese automotive production stage—from vehicle manufacturing to core engine operations.
Mitsubishi Motors acknowledged that, given the rapid shift toward electrification in China's automotive industry, the company had reassessed the market environment in China and was compelled to adjust its regional strategy, leading to the decision to terminate its participation in the joint venture.
Unlike other foreign companies, Mitsubishi Motors adopted a business strategy of “parts first, then vehicles” in China. In 1973, Mitsubishi Motors began its China operations by exporting medium-duty trucks. In the 1980s, leveraging engine technology cooperation, the company deeply penetrated the Chinese market. In 1997, the first engine joint venture in China, Shenyang Aerospace Mitsubishi, was officially established, introducing Mitsubishi's engine technology. The following year, Mitsubishi Motors established its second engine joint venture in China—Harbin Dong'an Automobile Engine Manufacturing Co., Ltd. (shortened to “Dong'an Mitsubishi”).
The two major collaboration platforms—Shenyang Aerospace Mitsubishi and Dong'an Mitsubishi—have made Mitsubishi engines the “heart” of numerous domestic brands, once accounting for 30% of the engine market share in domestically produced vehicles. At the time, domestic brands were in their infancy, and automakers such as BYD, Geely, and Great Wall Motors had either purchased or reverse-engineered Mitsubishi engines. This also established Mitsubishi Motors' status as the “godfather of domestic production.” Additionally, in the 1990s, imported models like the Pajero gained popularity in the government vehicle market due to their robust performance.
For a long time, Mitsubishi Motors adhered to the cooperative philosophy of “selling technology without participating in operations” in China. This continued until 2012, when Guangzhou Automobile Group, Mitsubishi Motors, and Mitsubishi Corporation established Guangzhou Mitsubishi through a joint venture. This venture integrated the import vehicle business and established a sales company, forming an SUV lineup represented by models such as the Pajero, Outlander, ASX, and Eclipse Cross. In 2018, sales reached 144,000 units. However, due to factors such as delayed electrification transformation, the failure to launch new models in a timely manner, and internal conflicts within the Renault-Nissan-Mitsubishi Alliance, GAC Mitsubishi's sales began to decline, reaching 133,000 units, 75,000 units, 66,000 units, and 33,600 units in 2019, 2020, 2021, and 2022, respectively.
In October 2023, Mitsubishi Motors announced its complete withdrawal from vehicle production in China. GAC Mitsubishi was restructured into a wholly-owned subsidiary of GAC Group, while the Changsha plant was acquired by GAC Aion for a symbolic price of 1 yuan.
Although vehicle production in China had come to an end, Mitsubishi Motors still retained its engine business at the time. However, this business was also eventually phased out. Among them, Shenyang Aerospace Mitsubishi has been renamed Shenyang Guqing Power Technology Co., Ltd., with corresponding adjustments to its shareholder structure. Mitsubishi Motors and others have withdrawn, and Beijing Saimu Technology Co., Ltd. has been added as a new shareholder. As for Dong'an Mitsubishi, Mitsubishi Motors is no longer among its shareholders.
Over the past four decades in China, Mitsubishi Motors has gone from its initial success in opening up the market with engine technology, to expanding into vehicle production and sales, and now to its gradual fade from the mainstream spotlight. This rollercoaster journey not only reflects its own strategic missteps and declining product competitiveness but also serves as a vivid illustration of China's automotive market over the past four decades—from its tentative beginnings to rapid rise, from foreign-dominated to domestic breakthroughs—witnessing the drastic restructuring of the market landscape and profound changes in consumer demand.
Today, Mitsubishi Motors has completely ceased its vehicle production operations in China, marking the end of an era. Going forward, the company will intensify its focus on the Southeast Asian market.