Mitsubishi leaves China and teams up with Renault
Mitsubishi leaves China and chooses a new partner. Following Mitsubishi Motors' announcement that it plans to invest up to €200 million in Renault's new battery electric vehicle (BEV) venture called Ampere, the carmaker has now confirmed media reports last month that it planned to withdraw completely from China by the end of the year. year, as sales continued to slump due to growing competition from local automakers.
Mitsubishi ended production at its joint venture with Guangzhou Automobile Group in Hunan province last March and will cease sales activities as stocks of existing vehicles run out. The exit from the market is complete and unmediated.
In the first eight months of 2023, sales in the world's largest automotive market fell 48% year-on-year to 12,500 internal combustion engine (ICE) vehicles, as overall demand continued to shift towards battery-powered vehicles and hybrids. The Japanese company does not yet feel ready in this sector, so it prefers to exit and concentrate on other markets.
Japanese automakers have struggled to keep pace with Chinese automakers in the BEV segment, with rivals such as BYD, Geely and even Tesla continuing to report strong gains.
Honda's sales in China have also fallen sharply year to date, by 24%, while Nissan's volumes are down 26%. China has focused heavily on BEV vehicles and those who have not developed this type of technology are heavily penalized by the market. The set of subsidies and regulations in favor of electric vehicles is a
Mitsubishi's decision to invest in Ampere followed Nissan's July announcement of a €600 million investment in the new Renault BEV and software company, strengthening the Alliance JV between the three companies.
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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/mistusbishi-esce-dalla-cina-allea-con-renault/ on Thu, 26 Oct 2023 10:30:56 +0000.