Japanese automaker Mitsubishi Motors [7211:JP] released a plan to boost its investment in developing electrified cars including hybrid and battery electric vehicles by 2030, as reported by Nikkei Asia on March 10. Under the plan, the automaker will shell out as much as JPY2.5tr (USD18.8bn) for research and development and capital expenditure by 2030, with 70% of the capital, or about JPY1.7tr (USD12.4bn), for green cars. The company aims to have 50% of its new car sales electrified by fiscal 2030, in line with its previous goal, and it proposed a new target of raising the percentage to 100% by fiscal 2035 in its latest investment plan. Mitsubishi considers plug-in hybrids (PHEV), hybrid electric vehicles, and battery electric vehicles (BEV) to be electrified vehicles. In fiscal 2021, electrified vehicles contributed about 7% of the company’s total new car sales.
Mitsubishi plans to enhance its competitiveness in key markets, especially its core market Southeast Asia, through its electrification strategy amid the global trend of switching to green cars. Citing Mitsubishi CEO, Takao Kato, during a press conference on March 10, the company aims to double its revenue from Southeast Asia. Countries in the region are seeking investments in EVs and are willing to provide government subsidies for the EV industry. Mitsubishi’s partner, Nissan Motor [7201:JP], also vowed last month to speed up efforts to electrify its cars by 2026, while Honda Motor [7267:JP] already pledged in 2021 to halt all gasoline-powered car sales beyond 2040.