Mitsubishi 2007 Annual Report Download - page 22

MITSUBISHI MOTORS CORPORATION Annual Report 2007
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0
100
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0504 06 07
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Plan*
0504 06 07
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–80
–60
–40
–20
0
(FY)
Plan*
0504 06 07
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Regional Topics
Japan
In the Mitsubishi Motors Revitalization Plan, the
company positions Japan as one of its most impor-
tant markets. Ongoing efforts are being made to
restore and strengthen the Mitsubishi Motors brand.
These include rolling out attractive new models, in-
creasing sales volume by reinforcing the sales ca-
pabilities of distributors and providing high-quality
services, and actively conducting sales promotions.
Overview of Fiscal Year 2006
Retail sales in the Japanese market totaled
247,000 units in fiscal year 2006, decreasing
3.9% year on year. In a challenging domestic cli-
mate where automobile demand fell 4.3% from the
previous fiscal year, MMC steadily improved its
performance, delivering higher year-on-year sales
in Japan for 19 consecutive months through
November 2006. Supporting this performance was
the launch of the new
eK series in September 2006
and the new
Pajero model the following month.
However, due to increasingly challenging market
conditions in Japan, total sales for the full fiscal
year were largely on par with the drop in total do-
mestic automobile demand. Despite these circum-
stances, the
Delica D:5 model launched in January
2007 made a strong start, posting cumulative sales
of 9,188 units through March 31, 2007, nearly
double the targeted sales for the same period.
As a result, Japanese sales in fiscal year 2006
rose 0.4% year on year to ¥506.0 billion. However,
while there was an improvement of ¥11.5 billion
from the previous fiscal year, an operating loss of
¥43.8 billion was recorded.
Initiatives in Fiscal Year 2007
In fiscal year 2007, MMC is targeting Japanese
retail sales of 250,000 units. This target is based
on the launch of two new sedan models and spe-
cial editions of current models. The sales volume
target is only slightly higher than the previous fis-
cal year. Amid increasingly challenging market con-
ditions, this reflects a large shift in our sales policy
from increasing sales volume to an emphasis on
profitability. The FY2007 policy has three priori-
ties: increase profits from new vehicles by enhanc-
ing the ratio of registered vehicles to total sales;
accelerate the rebuilding of our sales network; and
reinforce after-sales services.
•Sales Strategies Focused on Profitability
In fiscal year 2007, MMC will launch two new sedan
models: the
Galant Fortis and Lancer Evolution X .
We will actively approach customers currently driv-
ing Mitsubishi-brand sedans, as we continue to con-
duct the
Mitsubishi Mitekara Campaign . Linked with
the MMC corporate Web site, this campaign is de-
signed to win over a broader range of customers.
Through these and other initiatives, we aim to en-
courage more customers to visit MMC dealerships.
In the run-up to the launch of these new sedans,
MMC rolled out two new special editions of the popu-
lar 4WD
Delica D:5 model in May 2007. These were
the 2WD
C2 , and the ROADEST version featuring
an aero body kit. Our goal is to make the
Delica D:5
a long-selling model along with the Pajero and
Outlander in the SUV category, where MMC is strong.
This move reinforces our lineup of registered vehicles
in both the SUV and sedan categories as we work to
increase the ratio of registered vehicles in our total
sales volume in Japan.
*MMC revised targets for fiscal year 2007 when it released fiscal year 2006 full-year financial results on April 26, 2007.
Net Sales
(¥ billion)
Operating Loss
(¥ billion)
Retail Sales
(Thousand units)