On Tuesday, Mitsubishi Motors Corp (7211.T) reported a one-time loss of 10.5 billion yen ($78.31 million) due to decreased sales in China.
Mitsubishi did not adjust its full-year results projection because the unusual loss was previously factored in “to a certain extent.”
Mitsubishi’s warning shows how China’s electric car drive hurts combustion-engine automakers.
On Friday, Toyota Motor Corp (7203.T) CEO Koji Sato said that China’s booming battery-powered and plug-in hybrid electric car market would require the world’s largest automaker to act quicker.
Mitsubishi Motors reported a tremendous December loss despite introducing a new Outlander in China through its equity-method subsidiary, GAC Mitsubishi Motors Co Ltd.
“Amid changes in the Chinese domestic market itself and intensifying competition, sales targets continued to be missed, and profitability is expected to decline,” the 2012-founded China company warned.
Mitsubishi Motors reports 2022 results on May 9.
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