With Japan’s Mitsubishi Motors Corp posting dismal sales in key South-Asian markets for this financial year, its shares fell by more than 10% to an all-time low on Tuesday.
Mitsubishi Motors has projected an operating loss of $1.33 billion (140 billion yen) for the year ending on March 31, 2021, partly due to the Wuhan coronavirus pandemic.
According to records dating back to 2002, this would be Mitsubishi’s biggest loss in 18 years.
The results were “shocking”, said analyst Mio Kato of LightStream Research, while noting that Southeast Asian companies are of particular concern.
“ASEAN was meant to be its growth driver and was even positioned as its key attractive point to the Renault-Nissan Alliance. ASEAN sales have collapsed and it is now generating losses,” said Kato said in a note to clients in reference to the Southeast Asian region.
The coronavirus which emerged from Wuhan, China, has exacerbated the challenges faced by the company which was earlier battling falling sales in Southeast Asia – a major market that accounts for a quarter of its sales.
On Monday, Mitsubishi Motors announced a restructuring plan saying it would stop making the Pajero SUV crossover model in 2021, and close the plant in Japan that manufactures the model.
Mitsubishi also said, it would reduce its presence in Europe and North America and will instead focus on growing markets in Asia.