Mitsubishi Motors suspends China business indefinitely after slow sales

The transition from gasoline cars to cleaner vehicles had hit its line-up

Mitsubishi Motors Corp has suspended its China business indefinitely and will lay off staff after years of poor sales in a market rapidly turning to electric vehicles.

The Japanese automaker said that China’s transition away from gasoline cars to cleaner vehicles had hit its existing line up and seen sales fall far below expectations, according to a July 12 company memo. 

“In the past few months, management and shareholders have tried to the best of our ability, but due to market conditions and with great reluctance and regret, we must seize the opportunity to transition to new energy vehicles,” the memo said. 

 

Meanwhile, Mazda Motor Corp Chief Executive Officer Masahiro Moro said the automaker’s business is likely to suffer in China due to stiff competition in the world’s biggest electric-vehicle market. Moro, said he saw an industry in the middle of a transition that will have a lasting impact. The competition is much more severe than expected, he told reporters on Friday.