MITSUBISHI MOTORS CORPORATION (MMC) announced its three-year mid-term business plan (fiscal 2023 to 2025), Challenge 2025, to take on the challenge of further growth and the next generation. Please take 3 minutes to read the points of this plan.
Review of Previous Mid-Term Business Plan
In the previous mid-term business plan, "Small but Beautiful," we executed the initiatives including "reducing fixed costs by 20% or more by consolidating investment into core regions and products," "focusing management resources on ASEAN," and "reforming the business structure in developed countries." These initiatives resulted in a swift shift to a lean and agile business structure.
Furthermore, in order to improve profitability without falling into a balanced contraction, in FY2021 we embarked on activities to improve revenue in the form of a "strategy to improve our net revenue", and achieved a significant profit improvement.
Positioning This Mid-Term Business Plan
On the basis of the lean and agile business structure put in place through structural reforms enacted thus far, this plan will establish a stable revenue base through selection and concentration in Mitsubishi Motors' regional strategy and the continuation of company-wide net revenue improvement activities. In addition, Mitsubishi Motors will achieve sustainable growth through higher and stable spending on R&D and CAPEX, which will include increased expenditure on electrification, IT and new business as a proportion of total expenditure.
In terms of products, Mitsubishi Motors will continue to work on electrification as a solution to the global-level issue of climate change and to help achieve carbon neutrality. The company's regional strategy will see it accelerate the selection and concentration it has employed thus far and clarify the role of each region, before distributing management resources accordingly. In terms of business, as well as working on value chain expansion, Mitsubishi Motors will take on the challenge of new business to create new future sources of revenue. Furthermore, the company will build long-term relationships of trust with customers through products and technology encapsulating Mitsubishi Motors-ness, and promote our brand value.
Management KPI
The Main Actions of This Plan
(1) Concentrate management resources in ASEAN and Oceania, and increase sales volume, market share, and revenue
(2) Roll out 16 models (including nine xEVs) in the next five years
(3) Increase the investment in R&D and CAPEX by around 30% over the six years to 2028 compared with the past six years
(Allocation of investment to electrification, IT and new business is expected to reach around 70% from FY2026 onward)
(4) Reduce emissions of greenhouse gases in order to help achieve carbon neutrality
(5) Invest a total of 210 billion yen by 2030 to procure 15GWh of battery capacity
(6) Further bolster cooperation with the Alliance partners (mutually complementary OEM products, etc.)
(7) Take on the challenge of new business using assets unique to an automobile manufacturer (energy management, battery reuse, data sales, etc.)
For more information about the Challenge 2025 mid-term business plan, please access:
