Mitsubishi to withdraw passenger cars from Australia

The Australian car industry has been witnessing changes in the consumer’s buying pattern since 2017, when for the first time the sales of SUVs surpassed the passenger cars. Now, after two years, the changing trend has drawn the first blood. Mitsubishi, the fourth most popular automobile brand of Australia has formally announced that it will not be replacing the small hatchbacks such as Mirage and Lancer once the models are sold out from the local showrooms. 

While talking to the media during his Australia tour, the global COO of Mitsubishi, Ashwani Gupta said, “This is not the result of Mitsubishi’s strategy, this is the result of customer evolution, what the customer is looking for.”

While commenting on his observations on the market, David Chalker, a social analyst, and principal of  strategy planning group for monitoring customer behaviour of Australia remarked that the buyers have been buying cars according to their images and needs. He went on to add that the novated lease has given the fleet buyers to act like private buyers and choose whatever they want to, as long as it is in their budget. 

According to market insiders, the other companies might follow Mitsubishi’s footsteps and not invest in the hatchback segment since it takes almost the same amount of money as an SUV but the profit margins are much slimmer. The SUVs are charged with an extra 25% premium because of the taller driving position. Despite the bulky look, the SUVs might have less boot space and cabin room than that of the hatchbacks. So, the automakers will undoubtedly have the last laugh in this case. Chalker says that the car bought is the proper demonstration of the personality that the individual has and it gives the rider a feeling of being able to outrun the concrete jungle, even when he/she is stuck in traffic. 

However, the hatchbacks are not out of the market yet. Mitsubishi’s rival Nissan had dropped the Micra hatch, Pulsar small car and Altima mid-size sedan two years ago but now planning of reintroducing them.