After years of dismal sales in a market that is fast shifting to electric vehicles, Mitsubishi Motors has paused its China operations indefinitely and will lay off personnel.
According to a business document distributed on Chinese social media on Wednesday, the manufacturer said that its existing line-up had been negatively impacted by China’s switch to cleaner vehicles and that sales had fallen well short of projections.
The memo’s contents were validated by a representative of Mitsubishi’s regional partner Guangzhou Automobile Group. Both automakers stated that all parties were striving to “optimise the employee structure” and that they would do all possible to protect the affected employees’ legal rights.
In spite of the effects of the COVID-19 pandemic, Mitsubishi Motors Malaysia (MMM) was able to achieve a higher sales volume during it its last financial year (FY21: April 2021 – March 2022). The total volume of 19,217 units was a 66% increase compared to the volume sold in the same period when the Total Industry Volume of the Malaysian market declined by 6.7%. This achievement put the company comfortably in the top 3 spots of the non-national automotive category.
The Triton pick-up truck was the bestseller for the brand with 9,420 units sold in FY21, which was a 24% increase compared to FY20. Its popularity among Malaysians was evident as it maintained a market share of around 21.4%.
The XPANDER was also a strong seller and the dominant model in the non-national MPV segment. 9,065 units of the locally-assembled 7-seater were sold, accounting for 47.2% to the company’s overall total sales.
“In general, the past 2 years have been tough on the automotive industry, not only with the rising cases of Omicron COVID-19 but floods that affected the Klang Valley and East Coast region, as well as parts or chips shortage. There were many hurdles for the industry to overcome, thus for our sales performance to grow is a significant triumph for us. We take this chance to thank the Malaysian government for initiating and extending the SST exemption these last couple of years. With this, our customers could enjoy extra savings while it also gives us the time to fulfil all booking orders made,” said Shinya Ikeda, CEO of Mitsubishi Motors Malaysia.
“The company will continue to charge forward with strong momentum for 2022. We are aware that a large number of our customers aim to purchase their cars before the SST exemption expires by end of June. We are continuing our best efforts to meet the booking numbers, and we have already increased our production capacity while maintaining a high level of product quality. Our customers are the ones that put us here, thus providing them with utmost convenience and confidence towards the brand is our utmost priority,” he added.
The Mitsubishi Motors network consists of 54 showrooms (out of which 49 are 3S Centres) and 55 service outlets throughout Malaysia. In East Malaysia, there are 14 showrooms (7 in Sarawak and 7 in Sabah). The present range consists of the Triton which is imported as a CBU (Completely Built-Up) model from Thailand, and the XPANDER MPV which is assembled locally.
Growing popularity for the Mitsubishi Triton and XPANDER saw the total sales volume of Mitsubishi Motors Malaysia (MMM) increasing in 2021. The company today announced that 17,489 vehicles from January to December 2021, a 91% increase compared to the same period in 2020.
With 7,397 units delivered nationwide, the XPANDER MPV had its best sales performance since being launched. This volume also made it the best-selling 7-seater Japanese crossover in Malaysia. The model is assembled locally at the DRB-HICOM manufacturing complex in Pekan, Pahang.
“We are pleased that XPANDER has enjoyed strong sales performance thanks to the extension of the tax-free incentive period. This decision by the Malaysian government has certainly helped the industry to sustain itself during this challenging phase. At Mitsubishi Motors, we have now progressed to increase our production volume for XPANDER, to cater for higher production capacity, and to fulfill all booking demands,” said Shinya Ikeda, CEO of Mitsubishi Motors Malaysia.
The Triton, currently in its fifth generation, also continued to be among the more popular pick-up trucks in the country. In spite of the challenging market conditions, MMM’s dealers delivered 9,268 units in Peninsular and East Malaysia in 2021, 34% more than in 2020.
“The continued growth of Mitsubishi Motors market compared to last year is a sign that we are steadily moving towards recovery. As we look forward to advancing and progressing into 2022, we have heard every customer’s feedback regarding our products and services, and we will continue to improve for an ownership experience of the highest standard,” he added.
Support for Mitsubishi owners
Mr. Ikeda also said that MMM is offering support to Mitsubishi owners whose vehicles were damaged by the floods. “We would like to take this opportunity to extend our heartfelt sympathy to all who were affected by the recent flood incidents. We are here to support them, and they can get assistance by contacting our Customer Careline,” he said.
MMM is offering a 30% discount on Mitsubishi genuine spare parts and a 50% discount on labour costs (for flood-damaged vehicles serviced at authorised Mitsubishi Motors dealerships) until January 20, 2022. In addition, the company will also support owners by offering free towing service. All customers need to do is to contact Mitsubishi Assist 24Hrs customer careline (MA24) at 1-800-88-2166 to request for this service. Mitsubishi owners who arrange for their vehicle towing, without the assistance of MA24 and insurance coverage, are also entitled to rebates worth up to RM300.
Mitsubishi Motors Malaysia (MMM) reports that the company’s volume seller, the Mitsubishi Triton, recorded a 22.2% market share from January to July 2020, accounting for the bulk of the 4,008 units of Mitsubishi vehicles sold during the period. For the same period in 2019, the Triton’s market share was 16.9%.
The Triton is now in top position in the double-cab pick-up truck segment in three states – Melaka, Penang and Kedah.
Market share improvement
In overall performance, MMM saw its market share growing to 1.7% of the Total Industry Volume between January and July in spite of difficult market conditions, especially the long period of businesses being closed in compliance with the Movement Control Order.
“MMM is pleased to see positive sales take off after being under pressure by the unprecedented COVID-19 pandemic. This is driven largely by the 100% sales tax exemption from the government which applies to both our locally-assembled SUVs the ASX Compact SUV and Outlander seven-seater SUV. The good sales also reveal brand and customer’s loyalty in these very tough times,” said Tomoyuki Shinnishi, Chief Executive Officer of MMM.
New model launch soon
Mr. Shinnishi said that MMM is very excited for a thrilling year ahead with the introduction of the Mitsubishi XPANDER. “The 7-seater crossover will provide us with a solid base to maintain strong sales momentum until the end of the year. The demand and success of the new Mitsubishi XPANDER in our neighbouring ASEAN countries reflects on how well-suited this car is to meet the needs of customers and we’re confident that this impressive XPANDER will capture the heart of Malaysians,” he added.
In preparation of the introduction of the Mitsubishi XPANDER, selected number of Mitsubishi showrooms will be upgraded to Mitsubishi Motor’s latest Visual Identity (VI) this year to maintain the company’s leading position in providing excellent aftersales customer service.
For more information on the new XPANDER or other Mitsubishi models sold in Malaysia, visit www.mitsubishi-motors.com.my.