Mitsubishi Motors Corp. has cancelled plans to launch a hybrid car in December, says Jiji Press Wednesday (22/11/00) citing close sources.

According to these sources, the auto-maker has concluded that it should not enter unprofitable business when it is expected to post record consolidated net losses of 140 billion yen for the year ending March 2001.

Mitsubishi was to sell its vehicle for under 2 million yen from the month of December - even if it meant the company was to sell it at a loss - undercutting both Toyota's Prius hybrid model at 2.18 million yen and Honda's Insight hybrid at 2.1 million yen.

The car manufacturer will try to launch a hybrid vehicle - modelled on its Lancer Cedia small sedan - in either 2001 or later, continued these sources.