Japanese automaker Mitsubishi Motors plans to significantly expand its electric vehicle business within the next few years. It revealed a new mid-term business plan called Challenge 2025 to increase expenditures on research and development as well as capital expenditures related to electrification.
Additionally, the automaker intends to release four battery electric vehicles within the next five years.
Mitsubishi to increase 50% in sales in 2030
On March 10, Mitsubishi unveiled its strategy for the fiscal years 2023 to 2025. Since it introduced its first electric vehicle, the i-MiEV, in 2009, the company needs to be faster to expand its lineup of EVs compared to competitors in China or Europe.
During the fiscal year 2021, which ended on March 31, 2022, the xEV contributed approximately 7% of the company’s total sales.
Digitimes Asia reports that according to the presentation materials provided by Mitsubishi, the company has established a goal of increasing the percentage of electric vehicles it sells to 50 percent by the end of the fiscal year 2030.
The automaker has stated that it intends to increase the money invested in R&D and CAPEX by thirty percent over the next twenty-eight years. It is anticipated that the costs associated with R&D will amount to JPY 70 billion by the year 2025, which is equivalent to $521.5 million.
Mitsbushi to ramp up production of xEVs
Within the next five years, Mitsubishi intends to introduce sixteen new automobile models. There will be nine electric vehicles, including four battery electric vehicles (BEVs). It was stated that the Renault and Nissan alliances would each produce one BEV.
As outlined in the business plan, the company’s primary concentration in the 2030s will be either hybrid, plug-in hybrid, or battery electric vehicles.
The company stated that it would make an effort to increase its sales volume and revenue in the region, citing its view that the countries that make up ASEAN and Oceania will be its primary growth drivers in the coming years. The target is to achieve a market growth of 42% by 2030.
Mitsubishi has announced that it plans to ramp up production and deployments of xEVs tailored to each ASEAN nation. The Outlander PHEV, released in 2013, is part of the company’s strategy to increase sales in major cities across the Oceania region.
Mitsubishi to invest JPY 210 billion
The carmaker provided it will leverage the Renault–Nissan–Mitsubishi Partnership to give advanced technologies and widen its electric vehicle portfolio in Japan, North America, Europe, and China, all of which are on track to scale up their electric vehicle production.
To sustain its electrification strategies, Mitsubishi intends to invest JPY 210 billion by 2030 to acquire 15GWh of batteries.
According to the company’s updated business plan for the mid-term, the company’s objectives for 2025 include achieving a sales volume of 1.1 million vehicles and an operating profit of JPY 220 billion.
In the fiscal year 2021, it sold 937,000 automobiles, and sales are anticipated to reach 866,000 in the fiscal year 2022.
See Also:
- Mitsubishi plans to start Minicab-MiEV Kei Van production in Indonesia by 2024
- Mitsubishi EK X electric vehicle may be available in Australia
- Mitsubishi eK X wins 2022-2023 Japan Car of the Year and K Car of the Year
- The 2023 Mitsubishi ASX launches with 5 powertrain options in Europe
- Nissan and Mitsubishi launched electric Minicars in Japan
