The news sent ripples through the automotive world: Mitsubishi, a brand synonymous with rally victories, reliable workhorses, and innovative electric vehicles, was withdrawing from the UK market. But why are Mitsubishi pulling out of the UK? This decision, announced in 2020 and fully enacted by late 2021, wasn’t a sudden one, but rather the culmination of a series of strategic shifts and market pressures that ultimately made their presence in the UK unsustainable.
The Strategic Shift and “Selection and Concentration”
The primary reason behind Mitsubishi’s UK exit, and indeed their scaled-back presence in Europe as a whole, lies in the company’s wider “Selection and Concentration” strategy. This wasn’t simply about cutting costs; it was a fundamental reassessment of where Mitsubishi believed it could achieve sustainable, profitable growth. This strategy focused on prioritizing core markets and technologies, particularly in Southeast Asia and Oceania. The European market, with its stringent emissions regulations, intense competition, and evolving consumer preferences, was deemed less central to Mitsubishi’s long-term ambitions.
Several factors contributed to this decision.
- Stricter emissions standards (Euro 6 and beyond) required significant investment in hybrid and electric technologies.
- The UK market, already saturated, faced increasing pressure from European and emerging brands.
- The potential economic disruption caused by Brexit added further uncertainty.
In essence, Mitsubishi decided that their resources were better deployed elsewhere.
The table shows the sales performance of the Mitsubishi UK:
| Year | Sales Figures |
|---|---|
| 2018 | 31,784 |
| 2019 | 27,982 |
| These figures illustrate a decline in sales prior to the announcement of the withdrawal, further cementing the decision to leave the UK market. This shift allowed Mitsubishi to concentrate on regions where they had a stronger foothold and saw greater potential for future expansion, particularly in the ASEAN region. |
For a deeper understanding of Mitsubishi’s global strategy, explore their official investor relations reports and corporate presentations.
==========