Source: Jiji Press
Mitsubishi Motors plans to withdraw from production in China due to slowing sales of gasoline-powered cars in the country.
Informed sources said that the Japanese automaker has entered into final talks with its joint venture partner, Guangzhou Automotive Group, on the matter
The joint Chinese company GAC and the local partner are likely to convert the factory located in Hunan Province into a production base for electric cars. Mitsubishi Motors stated that talks about the future of its business in China with shareholders in the joint venture are continuing and no decision has been taken yet.
Mitsubishi Motors began production in China in September 2012 through a joint venture it established with Guangzhou Automotive Group and Japanese brand Mitsubishi Corporation.
In November 2022, Mitsubishi Motors launched its gasoline-powered Outlander SUV in China. However, due to slowing sales amid the popularity of electric cars, the company has stopped local production since March this year.
Amid the rapid shift to electric vehicles in China’s auto market, other Japanese automakers, including Nissan Motor Co. and Honda Motor Co., are also facing sharp declines in sales and are reviewing their strategies.