Mitsubishi Motors is determined to expand its market presence in Southeast Asia as it looks forward to building a new assembly plant in Bangladesh. The Japanese automaker also plans to market products developed for the region in other parts of the world such as Mexico and Africa.
Mitsubishi wants to strengthen its presence in Southeast Asia
According to a report from Nikkei Asia, Mitsubishi and the state-owned Bangladesh Steel and Engineering Corporation (BSEC) have already signed a memorandum of understanding (MOU). The two companies agreed to have a feasibility study on business opportunities, which will be the basis on when to build the assembly plant. The report added that the study will be completed by 2025.
The new assembly plant is said to cater to the growing demand for cars in Bangladesh. Mitsubishi has yet to share which models or vehicles will be made in the said plant. Well, that makes sense since the feasibility study will be finished by 2025. The amount of investment will also determine which Mitsubishi vehicles will be produced in the upcoming plant. Moreover, the plant’s production will be based on the Bangladesh government’s support and incentives.
Mitsubishi intends to have an assembly plant in Bangladesh since the Japanese automaker is expecting the market to grow along with the economy. Having a plant in the said country will help Mitsubishi to further increase its market presence in Bangladesh as well as in other parts of the Southeast Asian region. As of this writing, Mitsubishi’s production hubs in the region include Thailand, Indonesia, Philippines, among others.
Mitsubishi Strada Athlete
The intention of building a new assembly plant in Bangladesh could also reflect Mitsubishi’s determination to change its fortunes in Southeast Asia. The Japanese automaker’s market share in the region is reportedly 2.9 percent as of fiscal year 2020. The said number is a letdown when you look into Mitsubishi’s 15.3 market share that was achieved in 2015, an all-time record in terms of operating profit back then.
One of the issues cited when it comes to Mitsubishi’s current market share is the lack of releasing new models. This impacted the car brand’s overall sales performance in Southeast Asia. Despite this trend, Mitsubishi continues to be the second best-selling car brand in the Philippines during the first half of 2021.
The L300 is Mitsubishi PH's best-selling vehicle during the first six months of 2021
Mitsubishi Philippines held solidly on the second spot with more than 19,000 units sold in H1 2021. The said car brand managed to hold its position through the sales performance of the Mitsubishi L300, a light commercial vehicle. The L300 posted 6,021 units sold, which is more sales as compared to the Xpander with 5,543 units, and the Mirage G4 with 3,737.
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