Mitsubishi Motors has officially announced the termination of its joint venture partnership with Shenyang Aerospace Mitsubishi Motors Engine Manufacturing Co., Ltd., marking the Japanese automaker’s complete withdrawal from the Chinese market. This decision signifies the end of an era for Mitsubishi in China, as the joint venture, established in 1997 with partners including China Aerospace Automobile Corporation, has been a key player in the production of engines for both Mitsubishi vehicles and other Chinese automakers.
The joint venture began operations in 1998, supplying engines not only to Mitsubishi but also to domestic Chinese car manufacturers. Over the years, it played a crucial role in supporting the automotive industry in China by providing high-quality engines for a wide range of vehicles. However, with Mitsubishi ceasing passenger vehicle production and sales in China in October 2023, the engine joint venture became the last remaining business activity for the brand in the country.
Despite its efforts to sustain the joint venture and continue supplying engines to Chinese automakers, Mitsubishi ultimately decided to pull out of the Chinese market entirely. This move reflects the challenges faced by Japanese automakers in China’s rapidly evolving electric vehicle (EV) market. As domestic Chinese brands ramp up their electrification strategies, slower-moving Japanese firms like Mitsubishi have struggled to compete and have seen their market share decline significantly.
The termination of the joint venture marks the end of an era for Mitsubishi in China and highlights the shifting dynamics of the automotive industry in the country. As Mitsubishi bids farewell to its Chinese operations, the brand will now focus on other markets where it can leverage its strengths and continue to innovate in the ever-changing automotive landscape. It remains to be seen what the future holds for Mitsubishi in the global automotive industry, but one thing is certain – the brand’s legacy in China will be remembered for its contributions to the country’s automotive sector.
