The automotive world in Australia is undergoing a seismic shift, and Mitsubishi could soon find itself sidelining on the sales highway—here's why you need to pay attention before it's too late!
A flood of innovative vehicles is poised to catapult Chinese automakers like GWM, BYD, and MG to the pinnacle of popularity, potentially overshadowing Mitsubishi's once-dominant spot in the market.
Mitsubishi Australia has openly acknowledged that, at least in the immediate future, it won't be able to maintain its sales stronghold as these ambitious Chinese competitors solidify their roles as leading forces down under. Just think about it: last year, Mitsubishi Australia held a prestigious Top Five position among brands, but through the first nine months of this year, the company's sales have plummeted by 16.4 percent, totaling just 47,650 units and dropping it to sixth place overall. And this is the part most people miss—these figures aren't just numbers; they reflect a changing tide where established players face unprecedented challenges from fresh entrants.
Meanwhile, Chinese manufacturers such as GWM, BYD, and MG are confidently pledging to climb the sales ladder swiftly, aiming to join elite ranks alongside giants like Kia, Hyundai, Mazda, and Ford. They've backed these aspirations with a barrage of brand-new models, with even more on the horizon, while Mitsubishi has only recently introduced its second-generation ASX—about six months after phasing out the original— and its upcoming all-new successor to the Pajero Sport remains over a year away. This gap in product refresh means Mitsubishi risks slipping further behind, as explained by Bruce Hampel, the brand's General Manager of Product Strategy, during an interview with Drive.
"We're anticipating a five percent drop in overall industry sales volume compared to last year for this financial period, but simultaneously, the number of new players vying for market share is growing," Hampel noted. "The sheer mathematics show that the market slice for any long-standing original equipment manufacturer—or OEM, which is the company that produces the vehicle under its own brand—will inevitably shrink among the traditional ones. We're facing facts: our portion of the pie is set to diminish. We held onto fifth place in 2024 and are currently teetering around there, but if we can secure a spot in the Top 10 by year's end, we'll consider it a win."
Right now, trailing Mitsubishi are GWM and BYD, which have seen their sales soar by 23.7 percent and a staggering 149.8 percent year-to-date, respectively. But here's where it gets controversial—Mitsubishi isn't planning to linger at the bottom indefinitely, with its ambitious 'Momentum 2030' initiative vowing a lineup of cutting-edge vehicles by decade's end to regain competitive footing. Hampel emphasized the need to strike a balance: delivering timely, appealing products while nurturing its loyal customer base for long-term viability.
"That said, we must remain competitive, which requires those vehicles," Hampel added. "We're currently in a transitional phase, moving away from our older models like the ASX, Pajero Sport, and Eclipse Cross, and gradually introducing the next wave of Mitsubishi automobiles. Over the next 12 months, our priority will be enhancing customer experiences, strengthening the loyalty we enjoy with our vast fleet of existing vehicles here in Australia, and connecting more deeply with our consumer base. However, we're not diving into aggressive pricing battles or similar tactics to counter our rivals' bold maneuvers—that's not our current motivation. Our main goal is to turn a profit in the Australian market, so we're asking ourselves: 'How can we ensure profitability here?' This might entail accepting a smaller overall market share than we've previously held.
Instead, we're concentrating on the segments where we've historically excelled, aiming to bolster our presence there in the coming year. Looking ahead to the two-to-five-year timeframe, our focus is on rebuilding and expanding our product lineup to surpass our position from 12 months ago."
To help newcomers understand, think of OEMs as the masterminds behind car brands—companies like Mitsubishi that design and produce vehicles under their own name. This competitive landscape is a classic example of how global markets evolve, much like how smartphones shifted from Nokia to Apple or Samsung dominance. But is this fair play? Some might argue it's a natural progression of innovation, while others could see it as a challenge to local manufacturers. What side are you on? Do you believe Chinese brands are unfairly edging out established names, or is Mitsubishi's strategy sound for a comeback? Share your opinions in the comments—let's debate whether this is the dawn of a new era or a cautionary tale for the auto industry!
Tung Nguyen brings over a decade of expertise in automotive journalism, having honed his skills across various outlets before joining Drive in 2024. His versatile background spans news reporting, in-depth features, vehicle reviews, advice columns, and even video content creation, making him a true all-rounder in the field. Tung's passion for cars ignited in childhood, fueled by Saturday morning viewings of Transformers cartoons and endless sessions racing on PlayStation's Gran Turismo. Naturally, his ultimate dream ride is a Nissan GT-R, customized with a Liberty Walk widebody kit for that extra flair.
For more on Tung Nguyen, check out his profile at Drive.
