Mitsubishi is facing significant challenges in the Chinese market, where its sales have seen a noticeable decline due to stiff competition from local Chinese companies. This challenge comes as Chinese brands continue to gain strength in the local market, partially attributed to a series of crises that the Japanese company has been facing.

In this context, there has been a significant drop in Mitsubishi's sales compared to the previous year, marking one of the major crises the company has encountered. Although the company has not officially announced its withdrawal from the Chinese market, reports from the reputable magazine "Nikkei Asia" suggest that Mitsubishi has already initiated discussions with GAC, its Chinese partner, regarding the possibility of withdrawing from their joint venture. Additionally, Mitsubishi has announced a temporary production suspension and is looking to reduce jobs in the near future.

Low sales are one of the primary reasons for Mitsubishi's potential withdrawal from the Chinese market, as the Japanese brand experienced a decline of up to 60% in 2022 compared to the previous year. This decline occurred despite the launch of a new electric vehicle at the end of 2021 and the introduction of the new Outlander Hybrid model in 2022.

Mitsubishi is not the only brand facing this challenge, as overall Japanese car sales in the Chinese market decreased by 3% compared to 2021. At the same time, local Chinese car sales have increased, now dominating 51% of the total car sales in the Chinese market, reaching 23.56 million units in 2022.

It is important to note that Mitsubishi is not the only company affected by this decline in sales. Currently, many global and Chinese automakers are struggling to keep up with the significant demand for electric vehicles in China. These electric vehicles are known for their innovative designs, large screens, advanced technology, and attractive competitive pricing.

Mitsubishi has evidently struggled to adapt to these rapid changes in the Chinese electric vehicle market, ultimately leading the company to consider withdrawing from the market. In the event of withdrawal, GAC will take over the development of Mitsubishi's factory for the production of its own electric vehicles in China.