Mitsubishi shifts focus: Ends joint venture in China, makes significant investment in Renault’s EV Venture

Mitsubishi forges new paths, closing its Chinese joint venture and diving into electric vehicles through a strategic investment in Renault’s Ampere.

Mitsubishi Motors has decided to conclude its joint venture for car production in China, transferring its stake to Guangzhou Automobile Group (GAC). Established in 2012, the venture was a collaboration in building various models, including the ASX, Outlander, Pajero, Eclipse Cross, Eupheme, and Airtek EV. Starting in June 2024, the plant will transition to producing vehicles from GAC’s Aion brand, with a projected capacity of up to 600,000 cars annually. This move is accompanied by Mitsubishi booking a special loss of 24.3 billion yen ($162.4 million) in the current financial year to facilitate the restructuring of its Chinese operations.

Mitsubishi’s strategic redirection also includes a substantial investment of up to €200 million ($213 million) in Renault’s recently launched electric vehicle venture, Ampere. Under this agreement, Mitsubishi will acquire various EV models developed and manufactured by Ampere, marketing them under its own brand. This collaboration aims to optimize development costs and strengthen Mitsubishi’s position in the growing EV market.

In tandem with this investment, Mitsubishi plans to introduce new EV models in Europe and Southeast Asia, leveraging insights gained from key EV markets. Renault Chairman Jean-Dominique Senard expressed enthusiasm for Mitsubishi’s involvement in Ampere and looks forward to further discussions on this partnership during an upcoming visit to Japan. Meanwhile, Renault’s alliance partner, Nissan, has already committed to a substantial investment in Ampere, highlighting the collective commitment to advancing electric mobility.

This strategic realignment marks a significant step for Mitsubishi, emphasizing its commitment to electric vehicle technology and its dynamic role in shaping the future of the automotive industry.