A few days ago, Japanese automaker Mitsubishi Motors announced that in the third quarter of this year (July to September), its net sales were 679.
9 billion yen ($4.
46 billion), slightly lower than 695 billion yen in the same period last year.
operating profit fell 6.
4% year-on-year to 55.
2 billion yen.
net profit was 8.
5 billion yen, compared with 19.
6 billion yen in the same period last year.
While the weak yen, cost-cutting and foreign exchange earnings have helped improve the company’s latest quarterly performance, huge promotional spending has had a negative impact on performance.
However, the favorable exchange rate still helped Mitsubishi Motors make a profit despite increased discounts.
Regionally, sales of Mitsubishi Motors in North America rose 12 per cent to 91000 vehicles in the third quarter from a year earlier.
sales in Southeast Asia edged up 3 per cent to 124000 vehicles.
sales in Europe rose 14 per cent to 25000 vehicles.
and delivery in Japan’s home market increased by 10 per cent to 53000 vehicles.
Based on the latest quarterly sales data, Mitsubishi Motors said its global sales in fiscal year 2024 (April 1, 2024 to March 31, 2025) are expected to grow by 10% to 895000 vehicles, of which sales in North America are expected to grow by 13% to 185000 vehicles, while sales in Southeast Asia are expected to grow by 16% to 277000 vehicles.
At present, Mitsubishi Motors still believes that a “flexible promotion strategy” will help boost sales momentum in the North American market.
The North American business also contributed the largest share of its operating profit, about $175.
5 million, or nearly 50 per cent of Mitsubishi’s total operating profit.
Boosted by the recovery of Mitsubishi Motors’ business in the United States, North America has now become Mitsubishi Motors’ second largest market in the world, after Southeast Asia, which has long been a leader.
Mitsubishi Motors is also increasingly optimistic about its prospects in North America.
Tatsuo Nakamura, executive vice president of global sales of Mitsubishi Motors, said: “the US economy continues to be strong, and our sales have increased accordingly.
As a result, we can make a considerable profit according to the amount of incentives spent.
” Meanwhile, Takao Kato, chief executive of Mitsubishi Motors, said the entire US auto industry is under pressure to spend more cash on car promotions and clean up ballooning inventories amid slowing demand and oversupply.
Takao Kato said at the earnings conference: “our approach is to take measures as soon as possible to avoid overstocking of bad inventory and to ensure profits.
Although incentives have increased for the time being, we have been able to strike a balance between profits and inventory.
” Photo: Mitsubishi Motors.
So far, Mitsubishi Motors has only four models in the United States, the world’s second largest car market, and the company is trying to expand its product lineup in the United States to stimulate sales growth in the United States.
Mitsubishi Motors plans to launch new or newer models in North America every year by 2030 to consolidate its emerging position as the main profitable engine of Mitsubishi Motors.
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