Mitsubishi Motors Group has announced its withdrawal from the joint venture with Shenyang Aerospace Mitsubishi, marking its complete exit from China.
Back in 2023, Mitsubishi halted all vehicle assembly activities in the country.
The Shenyang Aerospace Mitsubishi joint venture, established in 1997, once played a significant role in Mitsubishi’s regional strategy. It was considered the Japanese automaker’s strategic foothold at the time, tasked with producing engines and critical drivetrain components for Mitsubishi’s domestically assembled vehicles, as well as for various Chinese automakers.
However, on July 2, 2025, the joint venture changed its name to Shenyang Guoqing Power Technology, after Mitsubishi Motors and Mitsubishi Corporation simultaneously withdrew their investments.
According to the official statement, Mitsubishi withdrew due to the “rapidly changing nature of China’s automotive industry,” particularly the rise of new energy vehicles (NEVs) and the declining demand for internal combustion engines.
With a presence in China since 1973 through truck exports, Mitsubishi once played a significant role in the local industry. In the early 2000s, its engine joint ventures provided drivetrains for about 30% of domestically produced vehicles.
The joint venture between the Guangzhou Automobile Group (GAC) and Mitsubishi, established in 2012, once held much promise. In 2018, the venture peaked with sales of over 144,000 units, but it gradually declined to 33,600 vehicles in 2022, facing competition from pure electric brands.
By March 2023, GAC Mitsubishi faced significant losses with a negative net asset value of nearly 1.414 billion yuan (approximately -196 million USD). In October 2023, Mitsubishi announced the cessation of automobile production in China and initiated restructuring. The joint venture factory was then taken over by GAC and converted into an electric vehicle production base for the Aion brand, commencing operations in June 2024.
Mitsubishi’s complete withdrawal reflects the challenges faced by foreign automakers in the context of China’s electrification push. Domestic assemblers like BYD and Tesla dominate the market share, while many joint ventures continue to falter.
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