Mitsubishi 2008 Annual Report Download - page 17

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15
annual report 2008 mitsubishi motors corporation
PHOTO ON LEFT PAGE:
SHOWROOM AT DEALERSHIP
OPERATED BY RUSSIAN SALES
COMPANY ROLF IMPORT
PHOTO ON RIGHT PAGE:
EXTERIOR VIEW OF A ROLF
IMPORT DEALERSHIP
Russia
In resource-rich Russia, consumers enjoy strong purchasing power, and Mitsubishi vehicles have
garnered a strong reputation, as testified by its three local Car of the Year awards. As a result, Russia is
positioned as a focus market for driving growth in the larger European region.
Targeting 60% Growth in Sales Volume in 2010
Through Expansion of Local Sales Network
MMC is bolstering its lineup of SUVs and mid-sized pas-
senger vehicles, which are expected to remain in strong
demand in Russia. Meanwhile, the company plans to
increase the number of sales bases in Russia from 106 at the
end of 2007 to 142 at the end of 2010. Efforts are also
focused on expanding sales by strengthening ties with local
sales company Rolf Import. Target sales volume is expected
to hit 170,000 units in fiscal year 2010, up approximately
60% from fiscal year 2007.
Began Construction of New Plant for Local Production
Via Joint Venture With PSA Peugeot Citroën
In May 2008, in order to stably produce and supply vehicles to the Russian market for long term, MMC con-
cluded a joint venture agreement with PSA Peugeot Citroën concerning local vehicle production, which
carries import tariff benefits. A groundbreaking ceremony for the local plant was conducted in June 2008.
Currently, preparations are steadily under way for the start of operations in 2011.
Ukraine
Ukraine has experienced sustained strong economic growth since 2000, and demand for automobiles,
especially overseas brands, has continued to expand. Total vehicle demand is expected to reach
approximately 940,000 units in 2010. Mitsubishi vehicles benefit from a strong reputation in the
Ukrainian market, having achieved the top sales volume among imported brands for four consecutive
years since 2004.
Driving Sales Growth With an Expanding Dealership Network
To further expand sales in the Ukrainian market, MMC is upgrading and expanding its lineup centered on
SUVs, as in Russia. In parallel, the company is expanding its dealer network, targeting 85 sales bases in the
Ukraine by the end of 2010, up from 51 bases at the end of 2007.
In April 2008, as in Russia, MMC began directly managing its operations in the Ukrainian market, which
had previously been overseen by Mitsubishi Motors Europe B.V. (MME), a Netherlands-based sales subsid-
iary overseeing Europe. This move will allow MMC to establish a support system for the sales company that
rapidly and precisely takes into account market needs, as it works to further strengthen sales activities.
10
08
07
06
05
04
170
140
142
126
106
91
81
60
107
70
57
37
MMC Sales Volume and Number of Dealerships in Russia
(Thousand units/No. of dealerships)
(Forecast)
(Forecast)
(Year)
■ Sales Volume (Fiscal year)
■
Number of Dealerships (Calendar year)
(Forecast)
(Forecast)