Mitsubishi Motors Corporation has recently announced the termination of its participation in the joint venture partnership with Shenyang Aerospace Mitsubishi Motors Engine Manufacturing Co., Ltd. (SAME). The reason given for the termination, according to the automaker, is the rapid transformation of China’s automotive industry, which is now focusing on new energy vehicles (NEVs).
SAME was established in August 1997 and began engine production in 1998. The joint venture operation was responsible for manufacturing engines not only for Mitsubishi-branded vehicles, but also for many Chinese automakers.
However, after reassessing its strategy, the comapny has taken this decision. Now, with the Japanese automaker out of the picture, SAME was officially renamed to Shenyang Guoqing Power Technology Co., Ltd.
The Japanese marque’s began its journey in China in 1973 by exporting medium-sized vehicles to the Chinese market. Through its two engine joint ventures, the company supplied powertrains for nearly 30% of domestically produced cars by the early 2000s. However, its market position gradually declined with the rise of China’s NEV sector and the slowing demand for internal combustion engine (ICE) powertrains.
The company’s story in China wasn’t just about engines, as it also partnered with Guangzhou Automobile Group (GAC) and Mitsubishi Corporation in 2012 to form GAC Mitsubishi, a joint venture split 50:30:20. Things started off well, especially with the Outlander SUV pushing sales to a high of 144,000 units in 2018.
However, by 2022, sales had dropped sharply to just 33,600 units. With its value slipping even more in 2023, Mitsubishi decided to shut down local production and rethink its strategy in China. By 2024, GAC took over completely and turned the factory into a base for its electric vehicle brand, Aion.
Mitsubishi’s exit is part of a larger trend, according to CNC. Foreign carmakers have been struggling to keep up in China’s fast-changing market. GAC-FCA is another joint venture that didn’t survive, as local brands continue to dominate and push hard into the EV space.
(Source: Mitsubishi Motors)
