by Mitsubishi is Leaving China Completely
Mitsubishi Motors has announced a complete exit from the Chinese market following the termination of its engine manufacturing joint venture. This decision comes as a result of the company’s sharp profit decline – they fell by 84% in the first quarter of 2025. Trade tariffs, which cost Mitsubishi 14.4 billion yen, played a significant role in this.
The company ceased automobile production in China back in 2023 and is now permanently closing its business in the country. The joint venture with Shenyang Aerospace Mit. Engine, which had been operating since 1998, was renamed after Mitsubishi’s exit. The company explains this decision by citing the “rapid transformation” of China’s automotive industry.
Market Losses and Strategic Changes
Mitsubishi began car production in China in 2012 in partnership with GAC. At the peak of their popularity, their annual sales reached 144 thousand units, but by 2023 the company had already exited this joint venture.
The most important market for Mitsubishi remains Southeast Asia, however, even there sales fell by 8.5%. In North America, there is growth of 5%, but this is happening due to Mexico and Canada, not the USA.
Despite the agreement between the USA and Japan to reduce tariffs from 25% to 15%, Mitsubishi has not yet changed its profit forecast for the financial year ending in March 2026. The company continues to seek ways to stabilize its business amidst global economic challenges.
