Core Viewpoint - Mitsubishi Motors has announced the termination of its joint venture with Shenyang Aerospace Mitsubishi Engine Manufacturing Co., effectively exiting the engine business in China, marking a significant decline from its previous status as a key player in the domestic automotive industry [2][3]. Group 1: Historical Context - Mitsubishi Motors played a crucial role in the development of China's automotive industry in the 1990s, providing essential engine technology when domestic brands were lacking [3]. - The establishment of Shenyang Aerospace Mitsubishi in 1997 led to the production of the 4G6 series engines, which became widely adopted by over 700 domestic car manufacturers, capturing 30% of the domestic engine market [3]. Group 2: Current Challenges - As Chinese automotive brands advanced in technology, their reliance on Mitsubishi engines decreased, particularly as the industry shifted towards electric vehicles, where Mitsubishi struggled to compete [4]. - Mitsubishi has not launched a new model in China for six years, leading to a continuous decline in market share [4]. - GAC Mitsubishi, established in 2012, peaked at 144,000 units sold in 2018 but saw sales plummet to 33,600 units in 2022, with financial troubles culminating in a negative net asset of -1.414 billion yuan by March 2023 [4]. Group 3: Financial Performance - Shenyang Aerospace Mitsubishi reported revenues of 1.339 billion yuan and a net loss of 62.527 million yuan in 2024, with Q1 2025 showing revenues of 301 million yuan and a net loss of 23.675 million yuan [5]. - The exit of Mitsubishi Motors from the Chinese market reflects a broader trend where weak joint ventures are being squeezed out as local brands gain strength [5]. Group 4: Industry Implications - The departure of Mitsubishi Motors serves as a warning to other foreign automotive brands, emphasizing the need to adapt to market changes and consumer demands, especially during the critical transition to electric vehicles [5].

Core Viewpoint - Mitsubishi Motors has officially terminated its joint venture with Shenyang Aerospace Mitsubishi Motors Engine Manufacturing Co., marking the end of its 40-year presence in the Chinese market, reflecting a significant shift in the Chinese automotive industry from technology catch-up to independent innovation [1] Group 1: Historical Context - Mitsubishi Motors entered the Chinese market in 1973, initially importing trucks, and later became a key player in the automotive industry through partnerships, particularly with Beijing Automotive Industry Company in the 1980s [2] - The establishment of joint ventures like Shenyang Aerospace Mitsubishi and Dong'an Mitsubishi in the 1990s allowed Mitsubishi to supply engines to numerous domestic brands, with over 90% of domestic models using its engines, totaling more than 7 million units [2] Group 2: Peak Performance - In 2012, GAC Mitsubishi was established, achieving a peak sales volume of 144,000 vehicles in 2018, becoming a significant player in the Chinese SUV market [4] - Mitsubishi's strategy of technology output combined with joint production allowed it to transition from a B-end supplier to a C-end brand, showcasing a successful case among Japanese automakers in China [4] Group 3: Decline and Exit - Since 2019, Mitsubishi's sales in China plummeted from 133,000 units to 33,600 units in 2022, with a debt ratio reaching 81%, leading to the cessation of vehicle production in 2023 and the exit from engine business by 2025 [5] - The decline was attributed to the rapid growth of the Chinese electric vehicle market, where competitors like BYD and Tesla capitalized on technological advancements and policy benefits, while Mitsubishi lagged in electric vehicle offerings [5][6] Group 4: Market Reaction and Consumer Sentiment - Consumers expressed mixed feelings about Mitsubishi's exit, with older owners feeling nostalgic but concerned about after-sales service and parts availability, while younger owners focused on the impact on second-hand car values [7][9] - A significant drop in the resale value of Mitsubishi vehicles was noted, with second-hand car dealers reporting a 20% decrease in acquisition prices following the exit announcement [10] Group 5: Industry Implications - Experts indicated that Mitsubishi's exit highlights a dual crisis of exhausted technological advantages and delayed transformation, emphasizing the need for foreign brands to adapt to the fast-paced electric and intelligent vehicle market [11] - The overall market share of Japanese brands in China has declined to a historic low of 11.2% in 2024, with significant drops in sales for major players like Honda and Nissan [13] Group 6: Lessons for Foreign Brands - The exit of Mitsubishi is part of a broader trend where several foreign brands have struggled in the Chinese market, underscoring the necessity for innovation and adaptation to local market dynamics [13] - Toyota has emerged as a counterexample, successfully implementing a "more Chinese" strategy and localizing decision-making processes to enhance its competitiveness in the market [14]