Mitsubishi Motors has recently opted to end its automotive production in China, sources said, after sales have been sluggish due to the rise of electric vehicles and stronger patronage for homegrown brands.
The Japanese carmaker has already begun exit talks with China’s Guangzhou Automobile Group, the former’s venture partner in the country.
GAC Mitsubishi Motors has a factory in Hunan province, its lone factory in China. It has ceased production since March with no plans of resuming its operations in sight.
Mitsubishi in 2022 sold 38,550 cars in China, down by about 60% from 2021.
The Japanese company began exporting commercial vehicles to China in the 1970s and was involved in a joint venture with Soueast Motor from 2006 to 2021.
GAC Mitsubishi Motors was established in 2012 and sold 140,000 vehicles in 2018, its peak year.
