By Gabby Chen

(JW Insights) May 31 -- Mitsubishi Motors plans to further prolong the suspension of its production in China beyond May, with continued falling sales as the local market shifts fast to electronic vehicles, reported Japanese Yomiuri newspaper on May 30.

Mitsubishi Motors, which set up its China unit in 2012, is discussing when to resume production in China with its local partner, a company spokesperson said, adding that there was nothing he could say about the timing, according to a Reuters report.

Mitsubishi Motors and other Japanese automakers have faced a sales crisis in China as a rapid shift to electric cars has led to a slump in purchases of internal combustion engine vehicles in this world's largest auto market.

Mitsubishi Motors said last month it had halted production of its Outlander sport utility vehicle (SUV) in China for three months until end-May and would take a $78 million charge for slowing sales at its joint venture with state-owned GAC Group (广汽).

However, the sales volume of the model in China for the year 2022 was merely 31,800 units, marking a 50% decrease compared to the previous year. Despite the introduction of a new Outlander model last December, local sales performance has consistently fallen short of monthly targets.

SUVs represent the largest portion of the electric vehicle market in China, where price cuts and the rollout of new models of local and overseas brands have cannibalized sales of gasoline-powered cars.

Driven by government support policies, electric vehicle adoption in China is rapidly increasing, accounting for around 20% of new car sales.