Mitsubishi’s Strategic Return to the EV Market in North America
In a strategic move to re-enter the electric vehicle (EV) market, Mitsubishi Motors announced on May 7th, 2023, its plans to launch a new electric vehicle in the U.S. and Canadian markets by the summer of 2026. This initiative marks Mitsubishi’s re-entry into the EV landscape after the discontinuation of its i-MiEV model in 2017. The new venture is in collaboration with Nissan, a partner in the Renault-Nissan-Mitsubishi Alliance.
Leveraging Alliance Partnerships
Mitsubishi’s approach involves leveraging the expertise and technological advancements of its alliance with Nissan. The new EV will share its platform with Nissan’s next-generation LEAF, which is set to be unveiled later this year. The upcoming LEAF is envisioned as a family-friendly crossover, sharing the CMF-EV platform with the larger Ariya model. Notably, the new LEAF will feature improved range, aerodynamics, and an integrated NACS charging port compatible with Tesla’s Supercharging network.
Comprehensive Product Line Strategy
Mark Chaffin, President and CEO of Mitsubishi Motors North America, emphasized that the new EV will complement their existing lineup, which includes internal combustion engines, plug-in hybrids, and electric vehicles. The aim is to offer customers a range of technologies that best suit their needs. The new EV will be sold alongside popular Mitsubishi models like the Outlander Plug-in Hybrid, Outlander Sport, and Eclipse Cross.
Momentum 2030: A Long-Term Vision
This latest announcement is part of Mitsubishi’s “Momentum 2030” business plan, which outlines the company’s commitment to launching new or significantly revised vehicles annually from 2026 through 2030. Chaffin described this plan as a clear path set for the company’s future, one that prioritizes their employees, dealer partners, and both loyal and new customers.
Challenges in the North American Market
Despite the positive outlook, Mitsubishi faces challenges in the North American market. While vehicle sales in the first quarter of 2025 were strong, with a notable 11% increase over the same period in 2024, the financial health of Mitsubishi dealerships tells a different story. The average net profit for dealerships has halved since 2020, with a further decline in net profit margins from 2.2% in 2023 to 0.92% in 2024.
Dealer Concerns and Market Adaptation
Dealers have expressed mixed feelings about the new EV. While they welcome the expansion of the lineup, there is concern over the lack of detailed information and the need for affordable pricing. One anonymous dealer emphasized the importance of keeping the vehicle’s price below 50 million KRW (approximately $42,000 USD) to align with market demand for reasonably priced vehicles.
Competitive Pricing: A Key to Success
The feedback from dealers highlights the critical role of pricing in the success of Mitsubishi’s new EV. As the EV market becomes increasingly competitive, offering a model that is both affordable and feature-rich will be essential to capturing consumer interest and boosting dealership sales.
Future Considerations and Market Dynamics
In addition to pricing, other factors such as vehicle range, performance, and the ability to utilize existing charging networks will influence consumer decisions. Currently, most Mitsubishi models are manufactured in Japan, while Nissan’s LEAF is assembled in Smyrna, Tennessee, using Japanese components. The market eagerly awaits further details on the specifications and pricing of both the Mitsubishi EV and the upcoming LEAF.
Conclusion: Navigating the EV Landscape
Mitsubishi’s re-entry into the North American electric vehicle market represents a significant strategic step. By leveraging its alliance with Nissan and focusing on delivering value through competitive pricing and technological innovation, Mitsubishi aims to establish a strong foothold in the evolving EV landscape. As the company navigates the challenges and opportunities of the market, the coming years will be crucial in determining its success in the electric vehicle sector.