There has been a sharp drop in sales to zero since April.
Mitsubishi Motors has decided to suspend its operations in China for an indefinite period of time and has begun the process of reducing its workforce, Bloomberg reports. The reason for this decision was several years of unsuccessful sales in a market that is rapidly shifting to electric vehicles.
Representatives of the automaker noted that China's shift to more environmentally friendly vehicles has affected their current model lineup, resulting in a sharp decline in sales.
A spokesperson for Mitsubishi's local partner Guangzhou Automobile Group confirmed the suspension. Both manufacturers also said they will work to optimize their staff structure and will do everything possible to protect the legal rights of downsized employees.
Mitsubishi joins other Japanese automakers that have been slow to introduce electric models and have ceded market share to rivals including Tesla and BYD. Honda and Nissan sales in China have been declining for several years, while Toyota's deliveries last year fell for the first time in a decade.
The decision to end Mitsubishi's operations in China follows the suspension of production at a plant in Hunan province in March.
While the company sold 134,500 vehicles in China in 2019, the figure was just 34,575 units in 2022. In January 2023, sales fell to 1,530 cars, and in April reached zero.
Recall that earlier the concern BMW promised to supply Russia with spare parts for cars.