Mitsubishi Motors' Q1 Operating Profit Nearly Doubles Despite Sales Decline; Full-Year Outlook Unchanged

For the first fiscal quarter ended June 30, 2024, Mitsubishi Motors reported an operating profit of JPY 10.1 billion (approximately USD 618 million), nearly double the JPY 5.6 billion (approximately USD 316 million) recorded in the same period a year earlier. Global revenue for the quarter totaled JPY 610.9 billion (approximately USD 3.8 billion), up 2% year-over-year, while global sales volume declined by 8% year-over-year to 179,000 units. The sales decline was primarily attributed to the Middle East conflict, which the company said reduced operating profit by JPY 2 billion (approximately USD 124 million) during the quarter. Apart from Japan, where sales rose 4% year-over-year to 29,000 units, all other major markets saw declines: North American sales fell 1% to 41,000 units, European sales plunged 40% to 6,000 units, and markets in the Middle East, Southeast Asia, Australia, and New Zealand also showed weak performance. Despite intensifying competition in Southeast Asia and tariff pressures in the United States, Mitsubishi Motors has maintained its full-year outlook unchanged. The company forecasts operating profit of JPY 90 billion (approximately USD 5.56 billion) for the fiscal year ending March 31, 2027, with net profit expected to reach JPY 25 billion (approximately USD 1.545 billion)—more than double the previous fiscal year’s figure. Global sales volume is projected to increase by 8% year-over-year to 857,000 units, including a 31% rise in European sales to 55,000 units, while North American sales are expected to decline by 5% to 157,000 units due to tariff impacts. Additionally, Mitsubishi Motors recently announced plans to enter the robotics business as part of its strategy to diversify operations.