MITSUBISHI MOTORS CORPORATION

Business Details

The Automotive Business is the core segment of the Mitsubishi Motors Group, centered on SUVs & Pickup Trucks and Electrified Vehicles (EV, PHEV, HEV), operating both domestically and internationally. Domestically, the company produces and sells standard/compact passenger cars and Kei Cars, while overseas, Thailand and Indonesia serve as major production bases, with sales spanning ASEAN, Oceania, North America, Europe, and other regions. The company is also promoting the introduction of OEM-supplied models utilizing its alliance with Nissan Motor Co., Ltd., as well as expanding its Electrified Vehicles lineup. In FY2026 (ending March 2026), net sales were ¥2,854,548 million, and operating profit was ¥72,492 million.

Recent Overview

Sales volume down 5% year on year, but recent profitability is on an improving trend due to new model ramp-up

In FY2025 (fiscal year ended March 2026), net sales in the Automotive segment increased to ¥2,854,548 million (up ¥96,699 million year on year), while operating profit declined sharply to ¥72,492 million (down ¥61,568 million year on year). Global sales volume decreased 5% year on year to 797 thousand units. The impact of US tariffs, the rise of Chinese manufacturers, and changes in environmental regulations across various countries were headwinds. However, sales of new models, including the new Destinator, have steadily ramped up, and recent profitability is on an improving trend. Extraordinary losses included a valuation loss on US environmental credits of ¥16,112 million and a loss on sale of investments in affiliated companies of ¥6,313 million. The Japan base recorded an operating loss of ¥45,130 million, falling into the red, while Asia generated an operating profit of ¥78,105 million, becoming the largest source of profit.

Key Products

Growth Drivers

• Accumulation of volume and profit through the full-year contribution of new models (including the Destinator) launched consecutively in the second half of FY2025
• Steady accumulation of sales volume through further expansion of destination markets
• Strengthening of product competitiveness through the introduction of the next new cross-country SUV, which will determine future growth
• Sales expansion centered on the Asian region (Philippines, Indonesia, Thailand, Vietnam) (FY2026 plan: 281 thousand units)
• Achieving increased revenue and profit through agile cost reduction and improvement of the profit structure
• Acceleration of electrified vehicle and advanced technology development leveraging the Nissan alliance

Risks

• Uncertainty in the business environment due to fluctuations in US tariff policy and geopolitical risks (invasion of Venezuela, deterioration of Middle East situation, etc.)
• Profit pressure due to intensifying export and price competition amid the rise of Chinese manufacturers
• Risk of declining sales volume due to sluggish total automobile demand in the ASEAN region (Thailand, Indonesia, etc.)
• Risk of increased compliance costs due to changes in environmental regulations in various countries
• Impact on demand from rising raw material and logistics costs and prolonged inflation
• Impact on net sales and operating profit from exchange rate fluctuations (yen appreciation)
• US business risk exemplified by the valuation loss on US environmental credits (¥16,112 million recorded)
• Structural profitability challenges due to the continuation of operating losses at the Japan base (¥45,130 million)