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18
ANNUAL REPORT 2003 POWER TO CHANGE 18
ANNUAL REPORT 2003 POWER TO CHANGE
Hideyasu Tagaya, Executive Officer (left)
Kenichi Miki, Executive General Manager, Asia, Latin America,
Middle East & Africa Office (right)
Feature
CHINESE OPERATIONS
MMC first began exporting finished vehicles for sale on the Chinese mainland back in 1970s.
Initially, trucks and other commercial vehicles comprised the majority of these exports. Over
the years, however, the Mitsubishi brand name has become increasingly associated in China
with passenger cars following the introduction of various models, and the launch of the PAJERO.
Today, MMC has production agreements with many of China’s leading car manufacturers,
including Beijing Jeep Corporation (BJC), South East (Fujian) Motor Corporation Ltd. (SEM),
Hunan Changfeng Motor Co., Ltd. (CFA), and Harbin Hafei Motor Co., Ltd. (HHMC). Local pro-
duction based on MMC technology now encompasses a range of models, including the PAJERO
SPORT (CHALLENGER), the DELICA, the FREECA, the PAJERO, and the MIRAGE DINGO.
In addition, MMC joint ventures based in the cities of Shenyang and Harbin produce engines
and transmissions, which are supplied not only to MMC affiliated plants but also to third-party
manufacturers. In Taiwan, MMC has a close and very successful manufacturing and sales rela-
tionship with a local carmaker, China Motor Corp. (CMC). This enabled Mitsubishi to be the top-
selling local passenger car brand in Taiwan for five years in a row from 1997.
WHAT IS THE STRATEGY FOR MMC BRAND
DEVELOPMENT IN CHINA?
OEM supply through other brands forms the core
part of our business development strategy for the
Chinese mainland. At one point, we were only put-
ting the Mitsubishi logo on finished vehicles
exported to China, but since we entered the alliance
with DC we have also been applying our own brand-
ing to models manufactured at BJC. The PAJERO
SPORT, which entered local production in March
2003, is the first Mitsubishi-branded passenger car
model to be made locally in China. In 2004, BJC will
introduce another new model, the OUTLANDER
(AIRTREK). This model will also be manufactured and
sold under the Mitsubishi brand. The PAJERO SPORT
and the OUTLANDER are both SUVs. It goes without
saying that their premium market positioning and
image within the Chinese market will be built on the
reputation already developed by PAJERO finished-
vehicle imports. As well as establishing Mitsubishi
as the leading brand in the SUV market segment,
we plan to launch MMC-branded models for the fast-
growing local small family car market, and in the
minivan segment. Together, we aim to achieve
annual sales of Mitsubishi-derived cars in China of