Mitsubishi's Struggle to Keep Up: Can the Japanese Giant Survive the Chinese Automotive Invasion?
The automotive landscape is shifting dramatically, and Mitsubishi finds itself at a crossroads. But here's where it gets controversial: while the Japanese automaker once dominated the Australian market, a new wave of Chinese brands is threatening to dethrone it. GWM, BYD, and MG are not just knocking on the door; they're kicking it down with bold promises, innovative products, and aggressive sales strategies.
Mitsubishi Australia has openly admitted that, in the short term, it cannot maintain its sales position against these rising Chinese competitors. Just last year, Mitsubishi was a Top Five brand in Australia, but as of September 2024, its sales have plummeted by 16.4%, pushing it down to sixth place. And this is the part most people miss: while Chinese brands like GWM and BYD have seen sales increases of 23.7% and a staggering 149.8% respectively, Mitsubishi's product pipeline seems sluggish in comparison.
The Japanese automaker has only recently launched the second-generation ASX, six months after discontinuing the first model, and the next all-new product, the successor to the Pajero Sport, is still over a year away. This delay is costing Mitsubishi valuable market share, as acknowledged by Bruce Hampel, the brand’s General Manager of Product Strategy. He candidly stated, 'We’re being realistic, that’s just math, our share will decrease.' But Mitsubishi isn't throwing in the towel just yet. With its ‘Momentum 2030’ plan, the company aims to introduce fresh models by the end of the decade to reclaim its position.
Here’s the bold question: Can Mitsubishi balance its focus on profitability and customer loyalty while keeping up with the rapid pace of Chinese competitors? Hampel emphasizes the need to bring the right products at the right time and to shore up their existing customer base. However, the company is clear that it won't engage in pricing wars or aggressive market tactics just to stay afloat. Instead, Mitsubishi is doubling down on customer experience and brand loyalty, focusing on key segments where it has historically thrived.
But is this strategy enough? With Chinese brands offering cutting-edge technology, competitive pricing, and a growing reputation for quality, Mitsubishi's traditional strongholds may not remain secure for long. What do you think? Is Mitsubishi’s approach a wise long-term strategy, or is it a recipe for further decline? Share your thoughts in the comments below and let’s spark a debate!
About the Author: Tung Nguyen, a seasoned automotive journalist with over a decade of experience, brings his passion for cars and storytelling to Drive. From his childhood fascination with Transformers and Gran Turismo to his current dream of owning a Nissan GT-R with a Liberty Walk widebody kit, Tung’s love for automobiles is as deep as it is diverse. Read more about Tung and his journey in the automotive world here.
