On October 18, Mitsubishi Motors released its medium-term business plan called "DRIVE FOR GROWTH" for three years (2017-2019) in Tokyo, Japan. The plan pointed out that compared with 2016, Mitsubishi Motors’ annual sales target It will grow by more than 30% and reach 1.3 million units by 2019.
In the medium-term plan, Mitsubishi Motors has clearly stated that it will introduce new products such as “Eclipse Cross” in China based on the domestically produced Outlander and strengthen its market position in China. Globally, the annual sales target for 2019 will increase by 2.5 trillion yen (146.55 billion yuan) compared to 2016.
Mitsubishi Motors Chairman and CEO Yi Zixu said: "This plan is our new plan. The top priority of our company is to restore the public's trust, to launch new models, and to take the V-shaped recovery track. At the same time, we are actively investing in equipment and new vehicle development, and solid foundation for sustained growth."
Through the medium-term business plan, Mitsubishi Motors will update its commodity matrix and promote important market growth while promoting efficiency.
As part of the increased investment, Mitsubishi Motors will strengthen its product matrix of SUVs, 4WDs and minivans, and launch 11 new models such as "Expander" and the new "Eclipse Cross". Through the launch of new models, we will simultaneously expand sales in Southeast Asia, Oceania, the United States, China, and Japan.
If the Eclipse Cross, which has attracted the attention of fans all over the world, can be imported into China, it is believed that it can set off another whirlwind in the SUV market.
During the medium-term plan period, Mitsubishi Motors will launch 11 new models. Six of the models are new models and are expected to be invested twice a year. Other models are completely new models of existing models. Through the implementation of the medium-term plan, Mitsubishi Motors hopes that its best-selling five models include SUVs, 4WD and plug-in hybrids, and account for 70% of its global sales. In addition, the plan is to further promote the transformation of small-displacement vehicles. After 2020, electric power systems will be provided for the main models including pure electric light vehicles.
CEO Yi Zixiu said: “The medium-term business plan aims to maximize our competitive advantage. It is achieved through growth models, especially on four-wheel drive models; on the other hand, market growth is achieved in areas where our brands have advantages, especially Southeast Asia. In addition, we will continue to implement cost management and build a streamlined and regular business system."
Launching the Chinese market to achieve 220,000 targets in 2019 Under the medium-term plan, Mitsubishi Motors will introduce new products such as “Eclipse Cross”, which will double the number of sales networks and achieve annual sales of 220,000 units in 2019.
In an interview on the 12th anniversary of the establishment of GAC Mitsubishi on October 12, Yizi Xiu said, “At present, the annual sales volume of 28 million vehicles in the Chinese market far exceeds the annual sales of 5 million vehicles in the Japanese market. From the perspective of market size, Mitsubishi Motors is more optimistic about China. The market must accelerate its development in China in the next five years."
In addition, Mitsubishi Motors has set its target market share to 10% for the Oceania region and Southeast Asia, which is positioned as the “base area”. And from the United States began to strengthen sales. In the United States, we will promote the intensified sales business and strive to achieve the goal of a 30% increase in 2019 and an annual sales of 130,000 units.
In the largest and most profitable Southeast Asia region of Mitsubishi Motors, the new Indonesian plant, which will be put into production this year, will introduce the new model “Expander” and expect it to become the leading model for sales growth in the region. Mitsubishi Motors expects annual sales in Southeast Asia to increase from 206,000 units to 310,000 units in 2019.
In Japan, it is planned to introduce new light-duty vehicles to achieve black lettering (profitability) and further strengthen the sales network and commodity matrix.
Three-year investment of 35.1 billion to reduce "cost of manufacturing" 1.3%
From the release of Mitsubishi Motors' medium-term plan, Mitsubishi Motors will increase its investment in the Chinese market to win the global expansion and realize the 2022 strategy of the Renault-Nissan-Mitsubishi Alliance.
During the medium-term business plan period, Mitsubishi Motors' investment in equipment will increase by 60% to 137 billion yen (about 8.03 billion yuan), and sales will increase by 5.5%. In addition, research and development costs will increase by 50% to 133 billion yen (about 7.8 billion yuan), and the total investment of Mitsubishi Motors will reach 600 billion yen (about 35.17 billion yuan) in three years. While maintaining financial rules, the annual free cash flow during this period is guaranteed to be profitable. In addition, regarding dividends, it will be returned to shareholders at a more competitive level than Japanese automakers.
Under the premise of large-scale investment in research and development, Mitsubishi Motors will tighten manufacturing cost management and plan to reduce the total manufacturing cost by 1.3% per year. In addition to implementing the above cost management, Mitsubishi Motors, as a member of the Renault-Nissan-Mitsubishi Alliance, will also achieve synergy of alliances worth 100 billion yen (about 5.86 billion yuan) through joint procurement and joint development. .
Mitsubishi Motors hopes to expand the synergy effect of the Renault-Nissan-Mitsubishi alliance through plug-in hybrid technology, competitive advantages in SUVs and minivans, and high market share in Southeast Asia, eventually achieving an doubling of the annual synergy at the end of 2022. A target of 10 billion euros (about 78.075 billion yuan).
In 2019, the operating profit margin was also set to increase to 6% or more. In 2016, Mitsubishi Motors' operating profit margin was 0.3%.
It is foreseeable that as the core of Mitsubishi Motors' market in China, GAC Mitsubishi will gain more support from the alliance and will have a great leap in terms of vehicle introduction and technology platform sharing.

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