Mitsubishi Motors’ long-standing alliance with Shenyang Aerospace has ended, marking the conclusion of the Japanese brand’s 52-year presence in China’s automotive market
In a brief statement, Mitsubishi announced the termination of its joint venture with Shenyang, citing “the rapid transformation of China’s automotive industry.”
Formed in August 1997, the Shenyang Aerospace Mitsubishi Motors Engine Manufacturing (SAME) venture began operations the following year, supplying engines to Mitsubishi and various Chinese automakers. Effective immediately, Shenyang will continue as Shenyang Guoqing Power Technology Co., Ltd., without Mitsubishi as a shareholder.
While not explicitly stated, the decision reflects the growing dominance of electric vehicles in China and the strong loyalty to domestic brands like BYD. Of Mitsubishi’s three Chinese-market models – Outlander, ASX, and Eclipse Cross – only the ASX offered an EV variant.
This shift has hit Mitsubishi hard. In Q1 2023, its GAC Mitsubishi venture, launched in 2012, posted a $196 million loss despite strong sales earlier in its run. By mid-2023, the plant shut down for conversion to produce GAC’s EV brand, Albion. Mitsubishi has since “reassessed its strategy in the region.”
The announcement ends over 50 years of Mitsubishi operations in China, which began with truck exports in 1973. At its peak in the early 2000s, Mitsubishi supplied powertrains for nearly a third of vehicles sold in the country. Now edged out by the EV boom, the company is pivoting, including an unexpected partnership with Foxconn.
It’s been a rough start to 2025, with operating profit down 84.1% in Q1 and uncertainty over U.S. auto tariffs. Still, there’s a glimmer of hope – a possible revival of the Pajero, recently spotted in pre-production testing.
