Mitsubishi won't slash prices to remain a top-five brand in Australia

7NEWS

a day ago

Mitsubishi says it intends to remain profitable in Australia while offering good-value products, but it won't slash its prices to remain a top-five auto brand here.
'While we have acknowledged a top-five volume target in the past, we aren't targeting a specific ranking or number,' Mitsubishi Motors Australia Limited CEO Shaun Westcott told CarExpert as part of an interview for our Expert Insights series.
'Our focus remains on delivering quality vehicles that consumers want, and supporting them throughout their ownership experience, while remaining profitable.'
Last year, Mitsubishi delivered 74,547 vehicles in Australia, making it the fifth best-selling brand on the market. It was up one spot and over 11,000 sales compared with its 2023 tally, though down slightly on its fourth-place position in 2022 when it delivered close to 77,000 vehicles.
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Mitsubishi sales have ebbed and flowed somewhat over the years. It reached a height of 84,123 deliveries in 1998, but annual deliveries wouldn't exceed 80,000 units again until 2017. It managed this feat in 2018 and 2019 as well, in the dying days of the popular Lancer.
While Mitsubishi vehicles like the outgoing ASX have often undercut rivals from Japan and Europe, a raft of Chinese brands have entered the Australian market with sharply priced vehicles of their own.
The ASX opens at $24,290 before on-road costs, but the new Chery Tiggo 4 opens at $23,990 drive-away.
Its Outlander, the second best-selling mid-size SUV in Australia, opens at $39,990 before on-roads, which sees it undercut by the Chery Tiggo 8 Pro Max, MG HS, and GWM Haval H6.
Many of these Chinese rivals have also offered significantly discounted pricing as part of runout or EOFY deals.
'In the current competitive landscape, heavily discounting and increasing incentives are a short-term race to the bottom,' said Mr Westcott.
'Mitsubishi is a volume player, but we have moved beyond being seen as 'cheap'; we are now known for creating value via well-equipped, capable and reliable vehicles that fit Australian customers.'
Likely to impact Mitsubishi's performance this year, however, is the loss of a few key vehicles.
A new Australian Design Rule (ADR) that came into effect on March 1, 2025, outlining specific performance requirements for autonomous emergency braking (AEB) systems, forced Mitsubishi to discontinue the Eclipse Cross, Pajero Sport, and the Japanese-built ASX.
The ASX nameplate isn't dead, however, with a replacement – a rebadged Renault Captur, built in Spain – due late on sale here in 2025.
Mitsubishi was also able to secure sufficient stock of discontinued vehicles, complied before March 1, to the point these vehicles remain on its local website as at the end of May.
The company still sold enough ASXs in April, for example, to make it the sixth best-selling vehicle in its segment.
The Pajero Sport also still managed to outsell sharply priced rivals from challenger brands like the LDV D90 and KGM Rexton, even if it fell far short of the likes of the Isuzu MU-X.
A new-generation Pajero Sport is expected in 2026 following a commitment from the brand to remain in key vehicle segments in which the brand is already established.
Mitsubishi has confirmed it's in development, though whether it retains the Pajero Sport name is 'still to be decided'.
However, Mitsubishi says it's too early to confirm the Renault Scenic E-Tech-based Eclipse Cross EV set to be revealed in September, while a separate electric vehicle (EV) based on the Nissan Leaf and intended for North America is also uncertain to come here.
Instead, Mitsubishi has confirmed a new product in the shape of an EV sourced from Taiwanese firm Foxtron. It's due in Australia during the second half of 2026.
That will see Mitsubishi offer four to five nameplates in Australia by the end of 2026. Prior to March 1, Mitsubishi was importing vehicles into Australia across five nameplates.
Mitsubishi says between now and 2030 it will launch at least eight new and refreshed models in Australia.
'It has been well publicised, and I have to say sensationalised, that we reduced our model lineup at the start of 2025 due to a change in ADR requirements,' said Mr Westcott.
'This wasn't limited to Mitsubishi but also impacted other brands, who seem to have escaped some of the sensationalism.
'We did announce the replacement of the ASX simultaneously, but some media houses chose to ignore or downplay this in exchange for sensationalist headlines.
'The timing of this change restricted us to confirming only the ASX replacement at the time, but we also said other new models would be confirmed in due course which has subsequently happened, as promised.
'Our future lineup will include a balanced mix of petrol, diesel, PHEV, and EV models – all designed for the Australian lifestyle and backed by our 10/10 warranty and capped-price servicing.'
While the days of the Lancer, Magna and Pajero are long gone, Mitsubishi remains a high-volume brand in Australia thanks to the popularity of vehicles like the ASX, Outlander and Triton.
'From a Mitsubishi perspective, we have been selling vehicles in Australia for 45 years, and we intend to be here for the foreseeable future, and beyond,' said Mr Westcott.
'You can't buy history like that, or the affinity with the Australian market that it creates.
'Our Australian manufacturing legacy remains strong; we are part of the Australian fabric, particularly in South Australia. And that can create a strong emotional connection.'
Mr Westcott also noted Mitsubishi's network of over 200 dealers and extensive parts and aftersales support.
'We intend to remain a key player in the automotive segment in Australia for decades to come,' he added.