Mitsubishi made surprise news for stopping their business activities in China. They also laid off all of their employees in China.
The Japan Times said the decision to leave China was made by Mitsubishi because of the transition from conventional cars to electric cars which are very strong in China. This made sales of Mitsubishi cars in the country led by Xi Jinping continue to decline.
“In recent months, management and shareholders have been doing their best in China. It’s just that market conditions and sales have continued to weaken,” wrote a memo issued by Mitsubishi China.
It is known that in China, Mitsubishi is collaborating or joint venture with local company Guangzhou Automobile Group. The Japan Times said that the Guangzhou Automobile Group confirmed Mitsubishi’s departure from China.
The transition from conventional cars to electric cars is the main reason for Mitsubishi leaving China. The reason is that until now Mitsubishi has one electric car that can be offered to consumers in China, namely the Mitsubishi Airtrek.
The problem is that Mitsubishi Airtrek’s sales are very small. Last year alone the electric car with the Mitsubishi logo sold only 500 units. No wonder Mitsubishi finally gave up too.
Even though China is currently known to be one of the largest electric car markets and conventional car markets in the world. Mitsubishi’s departure from China is also a warning for Japanese car brands that are still active in China, such as Toyota, Honda and Nissan.
This is because the electric car market in China is actually dominated by Tesla and electric cars made in China itself.
“Sales of Honda and Nissan have fallen for the past two years in China. Last year, Toyota also experienced a decline for the first time in ten years,” said the Japan Times.
Meanwhile, the Drive website said that Mitsubishi left China to focus on market development in developing countries. It has been proven that in countries like Indonesia and Thailand, Mitsubishi cars are selling very well.
