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NEWS
Mitsubishi's future mapped out
Emerging markets the key to growth in Mitsu's Mid-Term Business PlanMitsubishi has revealed the major planks of its latest business strategy, 'New Stage 2016'.
Launching strategic models, enhancing the brand identity as a manufacturer of SUVs, consolidating production in ASEAN nations and lowering costs through partnerships with other car companies will all underpin the plan.
While the strategic plan is newly announced, it builds on changes to the way Mitsubishi has conducted its own business dating back to 2003. For the two years – 2003 and 2004 – Mitsubishi struck a low point, posting a net income loss to the tune of 215 billion yen in 2003 and 475 billion the following year.
In 2005, with the implementation of the company's 'Revitalisation Plan' over a three-year period, Mitsubishi's fortunes began to improve... starting with a small operating income of 6.8 billion yen. A new plan commencing 2008 – 'Step Up 2010' – was hindered by the onset of the Global Financial Crisis, but the company's operating income and net income both returned to positive figures in 2009 and 2010. The company has remained profitable through the next stage, 'Jump 2013', which began in 2011 and will conclude at the end of the financial year 2013 – ending March 31, 2014. Operating income for FY2013 is forecast to be 100 billion yen, which marks a return to the sort of numbers last seen immediately prior to the GFC, in 2007.
'New Stage 2016' commences from the Japanese 2014 financial year, commencing April 1 next year. Combined sales of Triton and Mitsubishi's SUV range already exceed the company's passenger vehicle numbers, and 'New Stage 2016' will consolidate that trend with the introduction of a new Triton (based on the GR-HEV concept pictured) in FY2014 and a new 'Pajero Sport' – which is known in Australia as Challenger – in 2015.
And as motoring.com.au was told during the Tokyo motor show last month, there are new ASX and Pajero models on the way too.
Based on the new models planned for the next three years, Mitsubishi is aiming for combined Triton/SUV sales volume to rise from 57 per cent at present to 63 per cent by the end of FY2016. A lot of that growth will come from emerging markets, including Russia. Existing markets in Australia/NZ, Europe, North America and Japan will experience some growth for the Mitsubishi brand, according to the 'New Stage 2016' plan, but emerging markets are expected to account for the major part of growth – from 987,000 Mitsubishis sold in 2010, rising to a projected figure of 1.1 million vehicles by the end of FY13, and on to 1.4 million vehicles by the end of FY16.
Based on a graph formulated by Mitsubishi, Australia is a mature market and will play a very small part in any sales growth over the next three years.
However, MMC president Osamu Masuko told Australian journalists during the Tokyo motor show last month that the company anticipates MMAL sales could rise from around 70,000 currently to 100,000, once the new Triton and new ASX are introduced to the local market.
"To make [from] 70,000 to 100,000 is not that difficult," Masuko-san said, through an interpreter.
But the majority of projected sales growth between now and the end of FY16 will come from those emerging markets. Currently emerging markets account for roughly 50 per cent of Mitsubishi's global sales, but by the end of 'New Stage 2016', emerging markets will contribute around two thirds of the company's sales from around the world.
For Mitsubishi's purposes, emerging markets comprise ASEAN countries (Thailand, Vietnam, the Phillipines, Malaysia and Indonesia), China and Russia. Sales in ASEAN countries are expected to rise from 270,000 vehicles to 390,000 within the three-year timeframe. Russia is forecast to increase from 90,000 to 110,000 and China will add 90,000 sales to its current projected tally of 110,000 for a target of 200,000.
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Written byKen Gratton
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