Mitsubishi 2010 Annual Report Download - page 21

0200
10
09
08
07
790.0 (Forecast)
632.5
711.3
859.3
800 1,000400 600
0
10
09
08
07
74.0 (Forecast)
42.5
53.3
65.6
60 8020 40
0200
10
09
08
07
633 (Forecast)
532
507
628
800400 600
Asia and Other Regions
Fiscal Year 2009 Performance
Retail Sales
Retail sales rose 25,000 units, or 5%, year on year to 532,000 units. MMC
saw significant growth in North Asia, especially in China, where strong sales
were maintained throughout the year, achieving an increase of 68,000 units,
or 57% year on year. In ASEAN, where Thailand and the Philippines per-
formed well, and in Australia and New Zealand, retail sales recovered mark-
edly in the second half of the fiscal year, resulting in retail sales on par with
the previous fiscal year. Sales decreased year on year in Central and South
America despite signs of recovery in the major market of Brazil. In the Middle
East and Africa, retail sales declined year on year due to the continuing
severe environment of sluggish demand and intensifying competition in the
major markets of the Gulf nations, despite some increased retail sales mainly
due to large-scale business negotiations in the second half of the fiscal year.
Net Sales and Operating Income (Loss)
[Decrease in sales, decrease in income]
Reflecting the impact of a stronger yen and other factors, net sales in Asia
and Other Regions fell ¥78.8 billion, or 11% year on year to ¥632.5 billion.
Operating income declined ¥10.8 billion year on year to ¥42.5 billion mainly
due to decreased wholesale sales accompanying inventory reductions in the
first half of the fiscal year, despite cost reductions that included decreased
selling expenses and materials costs.
Outlook for Fiscal Year 2010
Retail Sales
MMC is targeting retail sales of 633,000 units, up 101,000 units, or 19%,
from fiscal year 2009.
In fiscal year 2010, MMC will successively introduce a new compact SUV
in all regions.
The following describes MMC’s other main sales policies.
In China, MMC expects to see powerful growth in the automobile
market in fiscal year 2010 also. MMC projects increased sales of the new
Lancer EX, which has been locally-produced by South East (Fujian) Motor
Co., Ltd. since November 2009. MMC will work to raise the level of the MMC
brand and to expand the number of sales outlets.
In the ASEAN region, the recovery in demand became evident from the
second half of fiscal year 2009, and MMC’s sales have maintained strong
levels. Regarding the production business in Thailand, the pillar of earnings
in the ASEAN region, both domestic and export shipments should increase
of Pajero Sport, which is achieving favorable sales in various countries. In
Thailand, where there is a growing consumer preference for passenger cars,
sales of the new Lancer EX, for which local production commenced last fiscal
year, should increase. In the Philippines, where retail sales grew nearly 40% in
fiscal year 2009, sales of the new Lancer EX, for which local production
commenced in September 2009, and sales of the popular Montero Sport
should increase. In Indonesia, MMC aims to increase retail sales by expand-
ing trim levels of the popular Pajero Sport, which was introduced in June
2009, as well as by sales of mainstay commercial-use vehicles. In Malaysia,
MMC will strengthen its sales and after-service systems in addition to
expanding the SUV lineup by introducing the Pajero.
In Australia, MMC aims to increase sales through its popular SUV lineup,
which includes the Challenger, introduced in December 2009.
In Brazil, which has achieved record sales for three consecutive years,
MMC will commence local production of the Pajero Sport and strengthen the
mainstay SUV lineup.
Net Sales
Operating Income (Loss)
Retail Sales
(FY)
(FY)
(FY)
(¥ billion)
(¥ billion)
(Thousand
units)
In the Middle East, MMC aims to increase retail sales through measures
such as strengthening sales and service systems in Saudi Arabia, where MMC’s
share is comparatively small despite it being the largest market in the region.
Net Sales and Operating Income
[Increase in sales, increase in income]
MMC is targeting net sales in Asia and Other Regions of ¥790.0 billion, up
¥157.5 billion, or 25%, year on year, mainly based on a projected rise in retail
sales. MMC expects operating income to improve ¥31.5 billion year on year
to ¥74.0 billion based mainly on reductions in materials costs and other costs
as well as projected higher retail sales.
Emerging countries represent a solid earnings platform that promises strong
growth. We plan to greatly increase unit sales in these regions.
Hiroshi Harunari
Managing Director, Head Officer of the Headquarters,
Overseas Operations Group Headquarters A, Corporate General Manager of
Overseas Management Office, In Charge of Overseas Operations Group B
Fumio Kuwayama
Executive Officer, Head Officer of the
Headquarters, Overseas Operations Group
Headquarters B
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MITSUBISHI MOTORS CORPORATION Annual Report 2010