JAPANESE giant Mitsubishi Motors has suspended production in China and plans to cut staff after struggling to move to electric vehicles in the world's largest car market, reports London's Financial Times.
Sales of Japanese cars have been hit hard in China after their manufacturers' slow rollout of electric vehicles and a price war sparked by Tesla. In June, Japanese brands' share of China's auto market fell to 17.8 per cent, down from 21.5 per cent in the same month last year, according to the China Passenger Car Association (CPCA).
The pullback by Mitsubishi comes as foreign carmakers face fierce competition with domestic rivals. The chief executive of rival Mazda warned that the Chinese market was entering a phase where "only the strongest will survive."
Following reports in local media, Mitsubishi said shareholders in its joint venture with Guangzhou Automobile Group (GAC) would seek a turnaround by reviewing how they managed the business in China and "optimising the workforce," stressing that it was not withdrawing from the market. GAC said in a statement that shareholders are "trying their best to safeguard employees' lawful rights and interests."
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