Market Insight: Big EV plans for Mitsubishi

AUSTRALIA and the Oceania region feature prominently in a three-year business plan unveiled this month by Mitsubishi Motors that outlines plans to concentrate management resources in the region with the aim of increasing sales, market share and revenue.

 

Unsurprisingly, electrification was a key word in Mitsubishi's “Challenge 2025” manifest that aims to guide the car-maker “on the challenge of further growth and the next generation”.

 

The “Challenge 2025” plan has among its main initiatives an annual sales volume of 1.1 million vehicles that will be achieved mainly through the introduction of 16 new models in the next five years, with nine of those being electrified.

 

One of those nine will include a battery-electric ute, with the others being a battery-electric vehicles (BEV) comprising a five-seat SUV, small ASX SUV BEV, Colt BEV, two Alliance-shared BEVs and hybrid power for a a five-seat mid-size SUV and a people mover.

 

There will also be a continuation of ICE vehicles including a new ute, people mover, a small SUV and a seven-seat SUV.

 

Previous plans targeted a lean and agile business structure that was put in place through structural reforms, including the integration of Mitsubishi into the Renault-Nissan Alliance.

 

Challenge 2025 hones the previous – and now, says Mitsubishi, successful – plan with the next step being to “establish a stable revenue base through selection and concentration in Mitsubishi Motors' regional strategy and the continuation of company-wide revenue improvement activities”.

 

“In addition, Mitsubishi Motors will achieve sustainable growth through higher and stable spending on R&D and capex, which will include increased expenditure on electrification, IT and new business as a proportion of total expenditure,” the plan said.

 

Mitsubishi said it will continue to work on electrification “as a solution to the global-level issue of climate change and to help achieve carbon neutrality”.

 

“The company's regional strategy will see it accelerate the selection and concentration it has employed thus far and clarify the role of each region, before distributing management resources accordingly.

 

“In terms of business, as well as working on value chain expansion, Mitsubishi Motors will take on the challenge of new business to create new future sources of revenue.

 

“Furthermore, the company will build long-term relationships of trust with customers through products and technology encapsulating Mitsubishi Motors-ness, and promote our brand value.”

 

Mitsubishi will also increase investment in R&D by about 30 per cent over the six-year period 2022-2028 compared with the six-year period prior to 2022.

 

Of that cost in 2025, Mitsubishi said the total R&D outlay would be ¥150 billion ($A1.7b) with ¥70 billion ($A790m) allocated to an investment on electrification, IT and new business which is expected to grow to about 70 per cent of the R&D budget from 2026 onward.

 

It will invest a total of ¥210 billion ($A2.38b) by 2030 to secure 15GWh of battery capacity.

 

Showing it is still an integral part of the Renault-Nissan Alliance, Mitsubishi will further cement its relationship by expanding mutually compatible products, such as EVs.

 

Locally, it also plans to concentrate management resources in ASEAN / Oceania, and increase sales volume, market share, and revenue.

 

In sales and service, it will roll out new showrooms, improve productivity in sales and service and introduce brand-focused activities for customers such as Mitsubishi’s Star Camp events, and participation in rallies.

 

There will also be an introduction of digital technology and IT programs and services including connected car services, apps and for EV owners, energy management tools.

 

It will boost sales of the Outlander PHEV in Oceania cities and for dealers, expand the value chain for customers to maintain loyalty.