Mitsubishi 2011 Annual Report Download - page 21

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Japan
Net Sales
0
100
200
300
400
500
2011
(Forecast)
2010200920082007
(Billions of yen)
488.5
398.4 368.5 363.3 370.0
(FY)
Operating Income (Loss)
(FY)
2011
(Forecast)
2010200920082007
(Billions of yen)
-30
-20
-10
0
10
20
-18.9
-15.1
-1.2
7.0
5.1
MINICAB-MiEV (Test vehicle) Delica D:2
First, I would like to note that we are doing everything in our power to acceler-
ate the recovery of the region affected by the Great East Japan Earthquake. Dur-
ing the year, we aim to increase sales of the Delica D:2 and our mainstay Delica
D:5 and RVR models. By diversifying our i-MiEV offering and introducing the
MINICAB-MiEV electric light commercial vehicle, we will cultivate a brand image
that equates Mitsubishi with electric vehicles.
Seiichi Ohta
Managing Director, Head Of cer of the Headquarters, Domestic Sales Group Headquarters
Performance in  scal 2010
During the first half, retail sales volume in Japan rose 16% year on year. In the
second half, however, the sales volume dropped 21% year on year, owing to the
Japanese government’s discontinuation of its eco-car incentives in September
2010 and the effects of the Great East Japan Earthquake. Consequently, sales vol-
ume for the full fiscal year amounted to 164,000 units, down 7,000 units, or 4%,
from the preceding fiscal year.
Net sales slipped ¥5.2 billion year on year, or 1%, to ¥363.3 billion, but we
posted a ¥6.3 billion year-on-year improvement in operating income, owing to
efforts to cut costs and improve profitability at MMC’s subsidiaries in Japan. As a
result, operating income came to ¥5.1 billion—moving back into profitability for
the first time since MMC began disclosing regional performance in fiscal 2000.
Outlook for  scal 2011
We will continue to do our utmost to aid recovery in the disaster-stricken regions
in the northern parts of Japan. We will work to attract new customers through the
new Delica D:2 compact minivan that seats five, introduced in March 2011. We
also plan upgrades to our popular Delica D:5 and RVR models. We have intro-
duced two grades of i-MiEV models, the “M,” available at a final cost to customer
of ¥1.88 million after incentives, and the “G,” which offers enhanced functionality
and an extended cruising range. By the end of 2011, we will introduce the
MINICAB-MiEV electric light commercial vehicle in an effort to steadily cultivate a
brand image that equates Mitsubishi with electric vehicles.
During fiscal 2011, MMC expects the discontinuation of the aforementioned
eco-car incentives and economic uncertainty to affect sales volume. As a result,
we forecast a sales volume equivalent to fiscal 2010 levels, at 164,000 vehicles.
However, MMC expects to maintain solid profitability. Compared with fiscal 2010,
MMC anticipates a ¥6.7 billion, or 2%, increase in net sales, to ¥370.0 billion, and
a ¥1.9 billion rise in operating income, to ¥7.0 billion.
Sales Volume (Retail)
0
50
100
150
200
250
(Thousands of units)
n Previous calculation method n New calculation method
219
168 171 164164164
2011
(Target)
2010200920082007
(FY)
MITSUBISHI MOTORS CORPORATION
Annual Report 2011 19