MITSUBISHI MOTORS CORPORATION
7211・Prime Market・Transportation Equipment
Business
Mitsubishi Motors Corporation became independent from Mitsubishi Heavy Industries in 1970 and operates in the development, production, and sales of automobiles and parts, as well as the Finance Business. The company comprises 35 consolidated subsidiaries and 16 equity-method affiliates. Domestically, it produces standard and compact passenger cars and Kei Cars, and sells them through East Japan Mitsubishi Motors Sales, West Japan Mitsubishi Motors Sales, and others. Overseas, it has production bases in Thailand and Indonesia, and operates sales networks across ASEAN, Oceania, the Middle East, Europe, North America, and other regions worldwide. Its core products are SUVs & Pickup Trucks such as the Outlander (PHEV), Triton, and Destinator. In FY2026 (ending March 2026), unit sales are expected to reach 960 thousand vehicles, with net sales of ¥2,896,536 million. Through its strategic alliance with Nissan Motor Co., Ltd., the company is pursuing platform sharing, electrification technology development, and procurement efficiency improvements.
Business Model
The Automotive Business accounts for approximately 99% of net sales, with wholesale sales of completed vehicles and KD packs serving as the primary revenue source. Products reach end customers through a domestic sales company network and overseas local subsidiaries and dealer networks. In the Finance Business, Mitsubishi Motors Finance (domestic) and Mitsubishi Motors Finance Philippines (overseas) provide sales finance and leasing, complementing vehicle sales. While platform and parts sharing through the Nissan alliance helps contain costs, the company appeals for added value through proprietary technologies such as its PHEV system.
Company Strengths
With production facilities at Mitsubishi Motors (Thailand) in Thailand and PT Mitsubishi Motors Krama Yudha Indonesia in Indonesia, the company recorded ASEAN sales volume of 259 thousand units and sales revenue of ¥624,545 million in FY2026 (ending March 2026). The company has also built an integrated manufacturing, sales, and finance foundation across the ASEAN region, including the consolidation of its sales finance subsidiary in the Philippines in April 2025.
The company positions its proprietary PHEV system, flagshipped by the Outlander PHEV, as a core technology, and has deployed HEV systems derived from this technology in models such as the Xpander and XForce. The XForce (HEV) won the "Thailand Car of the Year 2025" award. R&D expenditure of ¥116,843 million in FY2026 (ending March 2026) underpins the track record of continuous expansion of the electrified vehicle lineup.
Based on the strategic alliance agreement concluded in May 2016, the company and Nissan Motor Co., Ltd. share vehicle platforms, improve procurement efficiency, share the development of new technologies, and share production facilities. Battery EVs for developed markets are planned to be launched leveraging the alliance, curbing development costs by sharing electrification investments that would be difficult to undertake alone.
ENVALITH's Perspective
Performance Trend
Revenue maintained an expansionary trend, growing from ¥2,038,909 million in FY2022 (ending March 2022) to ¥2,896,536 million in FY2026 (ending March 2026). However, operating profit peaked at ¥190,971 million in FY2024 (ending March 2024) before decelerating sharply for two consecutive periods to ¥138,826 million in FY2025 (ending March 2025) and ¥75,517 million in FY2026 (ending March 2026), while profit attributable to owners of parent fell to ¥10,015 million in FY2026 (ending March 2026), down to around 6% of the ¥168,730 million level recorded in FY2023 (ending March 2023). The decline in profit in FY2026 (ending March 2026) was driven by a 5% decrease in unit sales, a rise in the cost-of-sales ratio (from 80.7% in the previous period to 84.5% in the current period), and extraordinary losses including a ¥16,112 million valuation loss on U.S. environmental credits and a ¥6,313 million loss on the sale of an equity investment in an affiliated company. External factors such as U.S. tariffs, the rise of Chinese manufacturers, and geopolitical risk also weighed on earnings. Currently, profitability is said to be on an improving trend on the back of the ramp-up in sales of new models, and it is worth noting that the results came in above the revised full-year operating profit forecast.
Growth Strategy
Aim for increased revenue and profit in FY2027 (ending March 2027) through continuous new model launches, expansion of destinations, and cost reduction
Plan to raise sales volume in FY2027 (ending March 2027) to 857 thousand units (up 60 thousand units year on year), reflecting the full-year contribution of new Destinator and other models launched consecutively in H2 FY2025. A new Cross Country SUV is also planned for launch, aiming to further strengthen product competitiveness.
Under the regional plan for FY2027 (ending March 2027), the company aims for expansion across all regions: Japan 140 thousand units (up 18 thousand units year on year), Europe 55 thousand units (up 13 thousand units), and Asia 281 thousand units (up 25 thousand units). The North America plan has been lowered from 165 thousand units to 157 thousand units, reflecting optimization of destinations in light of tariff impacts.
Implemented reductions in selling, general and administrative expenses, including advertising expenses (from ¥60,044 million in the previous period to ¥46,340 million in the current period) and R&D expenses (from ¥67,889 million to ¥64,865 million). The company will continue to pursue agile cost reduction and aims for increased revenue and profit even amid a challenging external environment.
Consolidation of Mitsubishi Motors Finance Philippines Inc. (from April 2025) has expanded sales finance receivables in Asia (¥328,967 million). By capturing demand for Automotive Sales Finance and leasing in line with the growth in the group's automobile sales volume, the company aims to increase the earnings contribution of the Finance segment.
Last updated: July 19, 2026