AutoBeta(AutoBeta.net)07/25 Report--

On July 24, Mitsubishi Motors announced its first-quarter operating results, according to figures released as of June 30, Mitsubishi Motors operating profit plunged to 3.9 billion yen (250 million yuan), operating profit fell 86%. Meanwhile, operating margins shrank to 0.7 per cent from 5 per cent in the same period last year, while net income fell 67 per cent to 9.3 billion yen (590 million yuan). Meanwhile, revenue from Mitsubishi Motors fell to 536.2 billion yen (34.1 billion yuan) in the first quarter.

Although profits and revenue all fell, according to its figures, global retail sales rose 2 per cent to 298000 vehicles in the first quarter, including growth in markets such as China, Japan and Southeast Asia.

Mitsubishi attributed the decline in first-quarter profits to a decline in wholesale sales and a poor performance of the model portfolio, which fell as a result of global inventory controls, including in the US. At the same time, Mitsubishi car costs rose 15 per cent due to further increases in R & D and labour costs.

Mitsubishi Motors said the decline in net income would be further widened compared with its results over the past year.

In fact, although Mitsubishi Motors says it has a good record in the Chinese market, judging from the sales of GAC-Mitsubishi in the first half, the situation is not optimistic. According to the data released by GAC GROUP, affected by the sharp decline in the SUV market, GAC-Mitsubishi sold 63100 vehicles in the first half of this year, down 16.06 per cent from the same period last year. In the first half of the year, there was a growth surprise in March and a year-on-year decline in other months. As of the first half of the year, GAC GROUP had completed only 36.51 per cent of its annual sales.

Mitsubishi Motors, which previously competed with Toyota, Honda and Nissan, seems to be slowly going downhill because of its lack of competitive products.

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