Mitsubishi Motors has announced an update to its mid-term business plan in which it had said it planned to reduce fixed costs by 20% under a ‘small but beautiful’ strategy.
The company – part of an international alliance with Renault and Nissan which faces some uncertainties – says it has achieved the 20% fixed cost reduction in one year, rather than the planned two.
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The company also said it has successfully concentrated management resources in the ASEAN region and boosted product rollout plans for the region.
Under a new three-year mid-term business plan (fiscal 2023 to 2025 – ‘Challenge 2025’) the company will prioritize EVs and aim for a sales volume of 1.1 million vehicles and operating profit of 220 billion yen (OP margin 7%). That compares with FY2022 operating profit of 170 billion yen (OP margin 6.9%). In 2022, MMC produced just over a million vehicles.
R&D expenses are projected to rise sharply due to investment in electrification. The company will increase investment by around 30% over the six years to 2028 compared with the past six years in R&D expenses and CAPEX.
In the next five years the company plans to roll out 16 models (including nine ‘xEVs’ – electrified models including BEVs and plug-in hybrids). Included in the plans are BEVs developed with Alliance partners Renault and Nissan.
