Mitsubishi Australia is keeping a close eye on surging Chinese brands as models like the MG ZS, GWM Haval H6 and LDV T60 muscle in on what was once the Japanese brand’s core audience.
Speaking to CarsGuide, Mitsubishi Australia boss Shaun Westcott said the threat of the Chinese brands is a “reality” brought about due to the current economic climate, but there are ways to counteract rival affordable and hot-selling models.
“Honestly, because of affordability, there is a segment of the market that will buy on price [and] not on quality, not on longevity or those types of things,” he said.
“We have to recognise and appreciate the fact that the Chinese cars are here to stay, and we need to develop strategies and plans that address that.
“And we believe we’re doing that as a company.”
As an example, the cheapest Mitsubishi model currently available in Australia is the soon-to-be-discontinued Mirage micro hatchback priced from $14,990 before on-road costs.
MG’s cheapest model meanwhile, the one-size up MG3 light hatchback, starts from $18,490 driveaway and competes against the Toyota Yaris (from $23,740 before on-roads), Mazda2 (from $23,390) and Kia Rio (from $19,690).
Likewise, the Mitsubishi Outlander mid-size SUV and 4×4 dual-cab Triton pick-up kicks off from $34,990 and $43,190 respectively, while rival Chinese models like the GWM Haval H6 and LDV T60 are $32,990 and $35,770 – each driveaway.
And MG, GWM Haval and LDV are increasing in popularity too, with each of the three brands up in VFACTS sales data to the end of May this year, while the overall market slumps due to ongoing supply shortages.
Mitsubishi however, has also increased its share, up 12.9 per cent so far this year to 35,902 sales for third place behind Toyota (98,816) and Mazda (43,687).
And the strategy employed by Mitsubishi Australia is to highlight how feature-rich its product line-up currently is, while also relying on a market-leading warranty, according to Mr Westcott.
“We are talking to our products, to the quality, to the 10-year warranties,” he said.
“We know what we’re selling, and we believe our customers will see that, understand that and know that.
“But I think these are harsh realities, the cost of living in Australia is becoming so high that there is a segment of the market that is cash strapped that needs a set of wheels that will buy the cheap and cheerful.”
With the Mirage soon to disappear from local showrooms, Mitsubishi Australia’s cheapest model will become the ASX small SUV, which kicks off from $24,990 before on-road costs, but Mr Westcott hinted that a future model will arrive for price-sensitive customers.
“Without revealing too much, I think there’s a reality that says we’re not going to desert that segment of the market entirely,” he said.
“Our strategy is probably looking to extend our range, so as we become more premium, we will still cater for what was our core market in the past.
“I know that’s a bit of an ambiguous statement, but watch this space.”
Keyword: Mitsubishi Australia monitoring rise of Chinese brands like MG, GWM Haval and LDV closely