Mitsubishi Australia has acknowledged its struggle to maintain its sales position amidst the rapid ascent of Chinese car brands in the Australian market. The Japanese automaker, which was among the Top Five brands last year, has seen a significant decline in its sales figures. By the end of September this year, Mitsubishi’s sales had dropped by 16.4% to 47,650 units, pushing it to sixth place.
The decline is attributed to Mitsubishi’s decision to discontinue three of its five models—the ASX, Eclipse Cross, and Pajero Sport—due to new safety regulations mandating the inclusion of autonomous emergency braking (AEB) in all new vehicles. Meanwhile, Chinese brands such as GWM, BYD, and MG have aggressively expanded their presence, aiming to compete with established brands like Kia, Hyundai, Mazda, and Ford.
Chinese Brands on the Rise
The rise of Chinese automakers in Australia is backed by a slew of new product offerings and strategic market positioning. While Mitsubishi has only recently launched its second-generation ASX, Chinese brands have been quick to capitalize on the market’s demand for innovative and affordable vehicles. GWM and BYD, for instance, have reported sales increases of 23.7% and 149.8%, respectively, so far this year.
According to Mitsubishi Australia’s spokesperson, the company is forecasting a 5% decrease in total industry volume year-on-year, yet the number of competitors vying for market share continues to grow. This trend is expected to impact the market share of established original equipment manufacturers (OEMs).
“Just the pure math dictates that the share of any particular OEM—of the established OEMs—will decline,” said Hampel, a representative from Mitsubishi Australia.
Mitsubishi’s Strategic Response
Despite the current challenges, Mitsubishi is not planning to remain in the lower ranks indefinitely. The company’s ‘Momentum 2030’ initiative aims to introduce new models by the end of the decade, positioning Mitsubishi more competitively against other brands. Hampel emphasized the importance of balancing product innovation with maintaining a loyal customer base to ensure long-term sustainability.
“We’re going through a transition period, out of the older legacy products with ASX, Pajero Sport, and Eclipse Cross, and we’re now starting to progressively move into the next generation of Mitsubishi vehicles,” Hampel stated.
Looking ahead, Mitsubishi plans to focus on enhancing customer experience and brand loyalty over the next 12 months. The company is determined to avoid engaging in price wars, opting instead to concentrate on profitability and fortifying its position in historically strong market segments.
“We need to make money out of our business here in Australia, so that’s the key focus for us, ‘how do we make the business in Australia profitable?’” Hampel added.
Market Implications and Future Outlook
The automotive landscape in Australia is undergoing significant changes as Chinese brands continue to gain traction. The competition is expected to intensify, with more entrants likely to challenge established players. Mitsubishi’s strategy to focus on core segments and customer loyalty could play a crucial role in its recovery and future success.
As the industry adapts to new regulations and consumer preferences, Mitsubishi’s ability to innovate and respond to market demands will be essential. The company’s efforts to introduce new models and enhance customer experience will be closely watched by industry analysts and consumers alike.
In conclusion, while Mitsubishi faces short-term challenges, its long-term strategy and commitment to innovation may help it regain its footing in the competitive Australian automotive market. The coming years will be pivotal for the brand as it navigates the evolving landscape and strives to reclaim its position among the top players.
