Mitsubishi Motors Corporation has formally ended its joint venture agreement with Shenyang Aerospace Mit. Engine Mfg. Ltd., marking the automaker’s complete exit from China’s automotive manufacturing sector. The move follows Mitsubishi’s decision to cease local vehicle production in 2023 and reflects a strategic withdrawal amid China’s rapid transition to new energy vehicles.
Originally established in August 1997, the venture began engine production in 1998 under the name Shenyang Aerospace Mitsubishi. It supplied powertrain components for Mitsubishi-branded models as well as multiple Chinese automakers. On July 2, 2025, the company was renamed Shenyang Guoqing Power Technology Co., Ltd., and Mitsubishi Motors and Mitsubishi Corporation both relinquished their shareholder positions.
In an official statement, Mitsubishi Motors pointed to the swift transformation of China’s automotive landscape, noting that the decision aligns with a reassessment of its regional priorities.
Mitsubishi’s engagement in China dates back to 1973, when it started exporting medium-duty trucks. By the early 2000s, its two engine joint ventures provided powertrains for roughly 30 percent of domestically produced vehicles. However, the surge in new energy vehicle adoption and declining demand for internal combustion engines gradually weakened Mitsubishi’s market share.
The GAC Mitsubishi joint venture, formed in 2012 alongside Guangzhou Automobile Group and Mitsubishi Corporation, initially gained traction with sales peaking at 144,000 units in 2018—of which 105,600 were Outlander SUVs. By 2022, annual deliveries had fallen to 33,600 units amid intensifying competition from domestic electric vehicle brands. As of March 31, 2023, GAC Mitsubishi carried 4.198 billion yuan in assets against 5.613 billion yuan in liabilities, resulting in a negative net worth of 1.414 billion yuan. In October 2023, Mitsubishi announced plans to halt local production and restructure its China operations. Guangzhou Automobile Group assumed full ownership of the venture and repurposed the facility for its Aion electric vehicle brand, targeting mass production by June 2024.
Mitsubishi’s full withdrawal underscores the broader challenges foreign manufacturers face in China’s electrified market, where domestic names like BYD and Tesla now prevail. Industry analyst Chen Liwei observed that legacy automakers are encountering increasingly fierce competition as the market pivots toward homegrown electric solutions.
“China’s automotive landscape has become a battlefield for EV innovation, where legacy automakers struggle to compete,” said industry analyst Chen Liwei quoted by Chinese media Jiemian news. “Mitsubishi’s retreat highlights the irreversible shift toward homegrown solutions.”
Source: CarNewsChina
