Mitsubishi Motors is reassessing its focus on Southeast Asia as Chinese automakers expand their presence in the region. The company is also considering a greater focus on developed markets, including the United States, following years of cutbacks.

"We leaned too heavily towards products for ASEAN [Association of Southeast Asian Nations] markets in our previous medium-term plan," CEO Takao Kato said during a briefing on the company's medium- to long-term vision at the end of May.

Kato's remarks highlighted the company's dependence on Southeast Asia. Mitsubishi Motors began manufacturing vehicles in Thailand in 1966 before expanding into Indonesia, Vietnam and other countries, using the regional network of trading house Mitsubishi Corp.

Over the past decade, Southeast Asia's share of the automaker's global sales increased from 20% to 31%. Since 2020, Chinese electric vehicle manufacturers have entered the region and increased their market share.

Mitsubishi Motors, which has yet to introduce EVs in Thailand, has seen its sales in the country fall by approximately half over the past five years. In the Philippines, sales growth has slowed since the beginning of fiscal 2026 in April.

The automaker plans to introduce 13 vehicle models over the six years through fiscal 2031. The plan includes one model primarily aimed at Southeast Asian markets: a redesigned version of the Xpander, which was launched in 2017.

Under the previous medium-term plan, the company introduced four new models in the region between fiscal 2023 and fiscal 2025.

Mitsubishi Motors plans to introduce approximately 10 models in developed markets, including minicars and EVs. "We will strengthen our position in the U.S. and Oceania, where our rollout of new models had been slow," an executive said.

The company also plans to expand its use of original equipment manufacturing (OEM) arrangements with partners in developed markets. It will launch a compact EV in Australia and New Zealand this year, with production handled by Taiwan's Foxconn. In North America, the company is exploring cooperation with Nissan Motor and Honda Motor.

The shift towards developed markets presents challenges in increasing sales volumes.

To increase sales in the United States and Japan, Mitsubishi Motors will need to gain market share from competitors in markets where its current share is only a few per cent. Efforts to reduce its dealership networks during a period of weak performance since 2000 have left the company with fewer outlets than its rivals.

Mitsubishi Motors is targeting global sales growth in the financial year ending March 2030, representing a 13% increase from fiscal 2025.

The company's relationship with Nissan and other Mitsubishi group companies may also be affected by changes in shareholding arrangements. A lock-up agreement involving major shareholders, including Nissan and Mitsubishi Corp., restricted the sale of Mitsubishi Motors shares for 10 years following Nissan's investment in 2016. The agreement expired on October 20th.

Following the expiry of the agreement, these shareholders can sell their stakes if certain conditions are met, including obtaining Mitsubishi Motors' consent.

The automaker's share price has fallen by more than 30% from its closing level on October 20th, 2016. None of the major shareholders has indicated an immediate intention to reduce its holdings. However, one major shareholder in the Mitsubishi group said, "As criticism of cross-shareholdings intensifies, the company should really be standing on its own."