Following the news that Japanese automaker Mitsubishi Motors plans to add more than five new battery electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs) to its product line-up starting this year;
Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading data and analytics company, offers his view:
“Mitsubishi Motors is one of the prominent and experienced players in the electric vehicle (EV) market with strong manufacturing capabilities across BEV, PHEV and hydrogen-powered vehicles. The company’s announcement of launching new BEV and PHEV models does not come as a surprise, as the company has been for long concentrating on EVs rather than the conventional internal combustion engine vehicles.
“The move follows various recent developments in 2020. Mitsubishi has rolled out its Environmental Plan for the next 30 years, which aims at net-zero CO2 emission by 2050. The company aims to reduce CO2 emission from its new cars by 40% and raise EV proportion in total sales to 50% by 2030. This requires Mitsubishi to phase out the existing vehicles and add new ones to the line-up. Furthermore, the company’s new mid-term business plan, which runs through fiscal year 2022 and makes major structural reforms to cut costs and increase operating efficiency, has EVs at its center. In addition, the company plans to strengthen its line-up of eco-friendly models across SUV, pickup, MPV and mini-cars segment.
“By concentrating on the EVs, Mitsubishi Motors is heading in the right direction as the company’s traditional internal combustion engine vehicles have been facing low uptake globally due to neck-and-neck completion, resulting in major revenue loss. In addition, the closure of its legacy SUV ‘Pajero’ production plant in Japan is a major step to realign its automotive business. Mitsubishi is anticipated to be benefited by the major electrification targets set by governments in the Asia-Pacific region. For instance, China plans 100% new vehicle sales to be eco-friendly by 2035. Similarly, Thailand and Indonesia are also in race to increase EV adoption. Growing regional governments’ focus on electrification will offer major opportunities to Mitsubishi in the near-to long-term.”