Mitsubishi’s Strategic Re-entry into the EV Market
In a significant announcement, Japanese automaker Mitsubishi declared its plan to re-enter the North American electric vehicle market by the summer of 2026. The company aims to introduce a new electric car in both the United States and Canada, marking its return since the i-MIEV’s departure in 2017. This move is a collaborative effort with its alliance partner, Nissan, highlighting a renewed focus on sustainable automotive solutions.
Details of the Upcoming EV Launch
Though specific details about Mitsubishi’s upcoming electric vehicle remain sparse, it is confirmed that the new model will share its platform with Nissan’s next-generation Leaf. The vehicle is expected to complement Mitsubishi’s existing lineup, which includes the Outlander Plug-in Hybrid, Outlander Sport, and Eclipse Cross. According to Mark Chaffin, President and CEO of Mitsubishi Motors North America, the new EV will offer customers a choice between internal combustion engines, plug-in hybrids, and fully electric options, catering to diverse consumer needs.
Nissan’s Contribution and Technological Advancements
Nissan’s role in this venture is pivotal, with the new Leaf set to debut later this year as a family-friendly crossover. Built on the CMF-EV platform, which also underpins the larger Ariya, the third-generation Leaf promises extended driving range, improved aerodynamics, and an integrated NACS charging port compatible with Tesla’s Supercharging network. These enhancements reflect Nissan’s commitment to advancing electric vehicle technology and infrastructure.
Momentum 2030: Mitsubishi’s Vision for the Future
Mitsubishi’s EV announcement is a key component of its “Momentum 2030” business plan. This strategic initiative seeks to release either new or significantly revised vehicles annually from 2026 to 2030. Chaffin emphasized that this plan is not merely a business strategy but a commitment to the company’s workforce, dealer partners, and loyal customer base. The goal is to ensure a robust and sustainable future in both the global and U.S. markets.
Current Market Performance and Dealer Challenges
In the first quarter of 2025, Mitsubishi reported impressive sales figures, with 31,637 vehicles sold in North America, an 11% increase from the previous year. Despite this, Mitsubishi dealers face financial challenges, as average net profits have nearly halved compared to 2020, with an average of $500,000 last year. Additionally, the average net profit margin dropped from 2.2% in 2023 to 0.92% in 2024. Dealers sold approximately 66,000 new Mitsubishi vehicles last year, averaging 17 sales per month per dealership.
Dealer Concerns and Pricing Strategy
The introduction of the new EV has elicited mixed reactions from dealers. While excited about the lineup expansion, many express concerns over the lack of specific vehicle details and stress the need for affordable pricing. A Mitsubishi dealer, who wished to remain anonymous, emphasized the importance of keeping the vehicle’s price below 50 million KRW (approximately $42,000 USD) to align with market trends and consumer expectations.
Final Thoughts on Mitsubishi’s EV Strategy
Mitsubishi’s challenge will be to price the Leaf-based EV attractively, ideally under the 50 million KRW mark, to capture the interest of cost-conscious consumers. The company has yet to announce any discontinuation of imported vehicles, with most of its models currently manufactured in Japan. Meanwhile, Nissan’s Leaf is assembled in Smyrna, Tennessee, using Japanese components. As the launch approaches, potential buyers eagerly await further details on driving range, performance, and, crucially, pricing for both the Mitsubishi EV and the new Nissan Leaf.