Mitsubishi (Part 1): Future revenue growth driven by new pickups and SUVs
Plan to increase production ratio of electrified vehicles to 20% by 2020
The latest developments at Mitsubishi Motors Corporation are reported in two parts (Parts 1 and 2). This first report focuses on the steps in Mitsubishi's new mid-term business plan titled "New Stage 2016,"for the three fiscal years from April 2014 through March 2017.
Pickup trucks, sports utility vehicles (SUVs) and crossovers are Mitsubishi's strategic models. The company intends to increase the ratio of these vehicles to total sales volume from 57% in the fiscal year ended in March 2014 (FY 2013) to 63% in FY 2016. Mitsubishi also plans to increase the number of "plug-in hybrid EVs (PHEVs)" to three. This is part of the company's plan to increase the production ratio of electrified vehicles to its total quantity to 20% by 2020.
In its regional strategies (1) the ASEAN region will remain Mitsubishi's primary source of profit, (2) the recovering business in Europe will be strengthened as the second pillar, and (3) continued efforts will be made to gain a firm profit in Japan and North America. Mitsubishi's business in Europe is recovering quickly in terms of net sales and operating income. The recovery is due largely to the Outlander PHEV that was launched in the FY 2013.
Mitsubishi is cooperating with several automakers in pursuit of "effective use of Resources through Partnerships to expand Business Opportunity." In June 2011, Mitsubishi and Nissan established a joint-venture, NMKV Co., Ltd., concentrating on mini vehicle business. The joint venture was expanded in 2013 with the participation of Renault. NMKV will play a central role in developing all-new mini vehicle-based global entry models and electric vehicles (EVs).
Part 2 of the report, which is coming shortly, will focus on Mitsubishi's consolidated financial results, sales and profitability by region, and the capital restructuring plan that was executed in the early part of 2014 along with the resumption of dividend payment.
Related report: Mitsubishi focuses on ASEAN countries to meet FY2013 targets (posted in July 2013)