Japan-based Mitsubishi Motors is poised to scale up its EV business in the next few years. It revealed a new mid-term business plan, Challenge 2025, aiming to increase spending on R&D and CAPEX in electrification. The carmaker also plans to roll out four battery EVs in five years.
Mitsubishi announced the plan for fiscal years 2023 to 2025 on March 10. Since launching its first EV, i-MiEV, in 2009, the company has been sluggish in growing EV lineups compared with rivals in China or Europe. The xEV accounted for about 7% of its total sales in fiscal year 2021 ending March 31, 2022.
Mitsubishi has set a target of increasing its EV proportion to 50% in fiscal year 2030, according to its presentation materials.
The carmaker said it will raise the investment in R&D expenses and CAPEX by 30% throughout 2028. By 2025, the R&D expenses are expected to reach JPY70 billion (US$521.5 million).
Mitsubishi aims to launch 16 car models in the next five years. Nine of them will be electrified, including four BEVs. It said there would be one Renault alliance and one Nissan alliance BEVs. According to the business plan, the company will mainly focus on hybrid, plug-in hybrid or battery EVs in the 2030s.
The company views the ASEAN and Oceania countries as its main growth drivers in the coming years, saying it will strive to increase sales volume and revenue in the region. The goal is to create a 42% market growth by 2030.
Mitsubishi said it would increase production and rollout of xEVs suitable for each ASEAN country. As for the Oceania market, it plans to expand sales in large cities with the Outlander PHEV, launched in 2013.
The automaker added that it will leverage the Renault–Nissan–Mitsubishi Alliance to offer advanced technologies and expand its EV portfolio in Japan, North America, Europe, and China, where electrified vehicle scale-up is on track.
Mitsubishi plans to invest JPY210 billion by 2030 to obtain 15GWh of batteries to support its electrification strategy.
With the new mid-term business plan, the company said it aims for a sales volume of 1.1 million vehicles and an operating profit of JPY220 billion in 2025. It sold 937,000 cars in FY2021 and is expected to reach 866,000 vehicles in FY2022.