Mitsubishi Dramatically Reduces Their Profit Projection

Mitsubishi Motors reports that the expected profit for the 2024 financial year will be 75.7 percent lower than initially anticipated. The manufacturer is adjusting the profit forecast downwards to the equivalent of 219.49 million euros. If the financial results of the interests that Mitsubishi has in other companies are included, the reduction in the profit forecast is more favourable.

But even in that case, the profit forecast is adjusted downwards by a hefty percentage: 52.6 percent. According to Mitsubishi, it is suffering from inflation and high production and sales costs, among other things. It is therefore immediately adjusting its international sales forecast from 895,000 cars to 848,000 units.

Most of that loss comes from Mitsubishi’s largest region, Southeast Asia. Specifically, the company is struggling in Thailand and Indonesia, where it was previously successful.

“There was a demand of one million vehicles annually in Thailand in the past,” CEO Takao Kato said on an earnings call Monday, according to Nikkei Asia. “It has not recovered significantly after the COVID-19 pandemic, decreasing even more rapidly in the financial years of 2023 and 2024 due to the high level of household debt.”

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