Mitsubishi Officially Exits China After Being Outcompeted

KatadataOTO – Mitsubishi Motors Corporation has officially ended its partnership with Shenyang Aerospace Mit. Engine Mfg. Ltd. The two have been operating Shenyang Aerospace Mitsubishi as a Joint Venture company for the Chinese market.

Mitsubishi's decision to leave the partnership marks the point where they completely exit the automotive market of China after halting production in 2024. This move also indicates that the company will focus more on developing markets that are considered potential for them.

Shenyang Aerospace Mitsubishi was established in 1997 and became the three-diamond logo company's way of entering China. They produced car engines for vehicles branded Mitsubishi as well as several other brands.

However, on July 2, 2025, the company changed its name to Shenyang Guoqing Power Technology Co., Ltd., with Mitsubishi Motors and Mitsubishi Corporation exiting as shareholders.

Photo : KatadataOTO

In its statement, Mitsubishi Motors cited the rapid transformation of the Chinese automotive industry as the reason for its withdrawal from the competition. The company also emphasized a strategic reassessment of its regional priorities.

This situation shows the immense challenges faced by foreign car manufacturers in China's electrification market. Domestic brands like BYD now dominate local operations while Joint Venture companies struggle to survive.

"The Chinese automotive landscape has become a battleground for innovation in electric vehicles, where legacy automakers are struggling to compete. Mitsubishi's withdrawal signifies an inevitable shift," said Chen Liwei, a Chinese industry analyst.

Indonesia Remains Strong

Meanwhile, in Indonesia, Mitsubishi's market is still considered strong. In the first half of 2025, the manufacturer recorded wholesales of 31,081 units and retail sales of 32,445 units.

These figures place them in the fourth position of best-selling car manufacturers in Indonesia. This achievement is expected to continue to increase with the presence of a new model, the Mitsubishi Destinator.

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Entering the SUV segment, the Mitsubishi Destinator comes with various attractive advantages for customers. One of them is its capacity to accommodate seven people at once.

The car uses a 1,500 cc 4B40 engine equipped with turbo technology capable of producing 160 hp and a peak torque of 250 Nm. Although its performance is powerful, its fuel consumption is claimed to remain efficient.