Mitsubishi Motors Corporation

Low-carbon transition plan

Mitsubishi’s current low-carbon transition plan expires in 2020, and the company does not have a climate-related strategy set for the medium or long term. Mitsubishi’s 2020 environmental vision was driven by its aim to become the industry leader in electric passenger vehicles. However, this vision is not supported by low-carbon vehicle production targets or fleet emissions reduction targets. Mitsubishi reported that it is in the process of setting a 2030 environmental vision that will use scenario analysis. This 2030 vision, along with fleet emissions reductions targets, will strengthen Mitsubishi’s decarbonisation efforts.

Mitsubishi entered the electric vehicle market early on, introducing the battery electric i-MiEV in 2009. However, its sales of battery electric vehicles have been on a steady decline since 2012. The company recently announced that it intends to move its focus away from battery electric vehicles towards plug-in hybrids, discontinuing the i-MiEV in 2019. This shift away from fully electric vehicles is the opposite of what is required under the low-carbon pathway.

Mitsubishi relies primarily on the Renault-Nissan-Mitsubishi Alliance for its shift away from passenger vehicle manufacturing towards alternative passenger mobility solutions. The company acts as the sole operator for only one of its innovative business activities. Mitsubishi should independently develop new low-carbon transportation solutions to help ensure that it remains competitive in a low-carbon economy.

Mitsubishi does not have any long-term commitments or emissions reductions targets. The company’s current low-carbon transition plan expires in 2020.

Mitsubishi’s 2020 environmental vision is driven by the development and promotion of electric vehicle technology. To meet its manufacturing emissions target, the company plans to employ more efficient processes.

At present, Mitsubishi is not on track to achieve its manufacturing emissions target set for 2020. The company is also promoting its plug-in hybrid vehicle model in the UK. As part of the Renault-Nissan-Mitsubishi Alliance, Mitsubishi has a small share in various low-carbon business activities. However, its individual decarbonisation research and development spending is significantly lower than the target set for the low-carbon pathway. Moreover, Mitsubishi recently discontinued its only battery electric vehicle model, moving in the opposite direction of what is required to decarbonise the industry.

Mitsubishi has not managed to reduce its manufacturing emissions consistently enough to remain aligned with the targets set for the low-carbon pathway. Moreover, Mitsubishi’s fleet emissions in China, its largest sales region, have steadily increased due to the company’s involvement in a joint venture to increase its sales of conventional internal combustion engine vehicles.

Despite early growth of its share of sales from low-carbon vehicles, Mitsubishi has not developed a low-carbon transition plan or established fleet emissions reduction targets. Moreover, given the company’s decision to discontinue its only battery electric vehicle model, Mitsubishi’s level of commitment to decarbonising the automotive industry is unclear.