Mitsubishi Declares Total Resignation From China

JAKARTA Mitsubishi Motors Corporation officially announced the termination of a joint venture agreement with Shenyang Aerospace Mitsubishi Engine Manufacturing Ltd., marking the full withdrawal of the Japanese car manufacturer from the automotive manufacturing sector in China.

This decision, reported CarNewsChina, Friday, April 25, follows the termination of local car production in 2023 and underscores Mitsubishi's strategy to step back amid China's rapid shift towards new energy vehicles (NEVs).

Founded in August 1997, Shenyang Aerospace Mitsubishi has become the backbone of Mitsubishi's strategy in China, producing machines for both Mitsubishi branded vehicles and various Chinese automotive manufacturers. This joint venture, which began operating in 1998, supplies powertrain components, important to support Mitsubishi's local assembly line and third-party manufacturers. However, on July 2, 2025, the company officially changed its name to Shenyang Guoqing Power Technology Co., Ltd., with Mitsubishi Motors and Mitsubishi Corporation out as shareholders.

In a statement, Mitsubishi Motors called China's "fast transformation of the automotive industry" the main reason for leaving, emphasizing its regional priority strategic reassessment.

Long Journey Ended In Bitter

Mitsubishi's journey in China began in 1973 with medium truck exports. In the early 2000s, two of its joint ventures supply powertrains for about 30% of domestically produced vehicles. However, China's rise in the new energy sector, coupled with the weakening demand for internal combustion engines, eroded its market position.

The formation of the GAC Mitsubishi in 2012 a joint venture of 50:30:20 with Guangzhou Automobile Group (GAC) and Mitsubishi Corporation initially showed hope. Sales peaked at tens of units in 2018, driven by sales of 105,600 Outlander SUVs. However, annual shipments plunged to 33,600 units in 2022 amid increasingly intense competition from domestic EV brands.