Mitsubishi Motors Corp. reported a sharp decline in quarterly profits as intensifying price competition and slower-than-expected market recovery hit the Japanese automaker’s bottom line.
Net income attributable to owners tumbled 68% to ¥33.2 billion ($218 million) in the nine months through December, while operating profit fell 35% to ¥104.6 billion. Sales dropped 4% to ¥1.99 trillion despite a 7% increase in global retail volume to 624,000 units.
The Tokyo-based company slashed its full-year profit forecast by 77% to ¥35 billion, citing weaker wholesale volumes and rising expenses to support suppliers facing inflationary pressures. The downward revision reflects mounting challenges in key markets, particularly Thailand where industrywide demand remains subdued.
Europe emerged as a trouble spot with revenue plummeting 57% as political uncertainties weighed on consumer sentiment. North American operations saw profits decline despite steady sales growth, squeezed by aggressive industry pricing.
The automaker maintained its annual dividend forecast at ¥15 per share, up from ¥10 the previous year, even as it grapples with deteriorating market conditions. Management announced it is exploring potential collaboration with Nissan Motor Co. and Honda Motor Co., signaling possible industry realignment as automakers face technological disruption.
