Mitsubishi 2007 Annual Report Download - page 29

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27
North Asia (China and Taiwan)
China’s automobile market is projected to experi-
ence further growth supported by further progress
in motorization, despite having already surpassed
an annual sales volume of more than 7 million
vehicles. Reinforcing sales in China is therefore a
priority for MMC.
In April 2006, MMC commissioned a new R&D
Center in Shanghai with the establishment of wholly
owned subsidiary Lingfa Car Technical Consulting
(Shanghai) Ltd. Its current focus is on conducting
quality assurance for locally produced parts and swiftly
responding to legislative trends and customer needs.
Looking ahead, Lingfa Car Technical Consulting
(Shanghai) will construct an R&D framework and serve
as a support base for development work carried out
by local companies in which MMC has invested.
In September 2006, the Company completed
procedures for taking a direct equity interest in South
East (Fujian) Motor Co., Ltd. (SEM), which is key to
production and sales of Mitsubishi-brand vehicles
in China. Subsequently, South East (Fujian) Motor
began production and sales of the
Lancer
, the first
mid-sized sedan in China with a Mitsubishi badge,
and the
Space Wagon
minivan (
Chariot Grandis
). The
upper-class sedan
Galant
was brought to market in
December 2006 as part of a move to expand the
lineup of Mitsubishi-brand vehicles in China.
To complement Mitsubishi-brand vehicles pro-
duced by South East (Fujian) Motor, MMC strength-
ened sales of imported finished vehicles from Japan,
including the
Lancer Evolution IX
and the new
Outlander
. As a result, Mitsubishi-brand vehicles ac-
counted for nearly 40% of the Company’s sales
volume in the Chinese market in fiscal year 2006,
up from 20% in the previous fiscal year. Moreover,
sales volume is heading towards recovery, increas-
ing from 37,000 units in the first half of the fiscal
year to 53,000 units in the second half.
To establish sales of imported finished vehicles
from Japan in China as a new earnings stream along
with locally produced vehicles, MMC plans to launch
two new SUV models at the end of 2007, with the
aim of doubling sales of imported finished vehicles
to 11,000 units compared with fiscal year 2006.
Additionally, MMC continues to support local pro-
duction operations, including through the develop-
ment and expansion of the dealership network, which
is aimed at growing sales of Mitsubishi-brand
vehicles by South East (Fujian) Motor.
Regional Topics—Asia, ASEAN and Other Regions
Galant (made by SEM) Space Wagon (made by SEM)
Models sold in Asia, ASEAN and other regions