Mitsubishi Motors reported a 77.6 per cent rise in operating profit for the first half of fiscal 2026, the six months to 30 September, to JPY 30.63 billion, and then cut its full-year volume and earnings guidance in the same release.
Revenue rose 3.8 per cent year on year to JPY 1.3088 trillion. Ordinary profit fell 13.1 per cent to JPY 13.75 billion. The half closed with a net loss of JPY 2.961 billion, narrower than the JPY 9.231 billion loss a year earlier.
Where the profit came from
The operating profit movement decomposes cleanly. Currency effects added JPY 30.2 billion. Other factors added JPY 17.6 billion. Higher material and transport costs removed JPY 24.2 billion. Intensified sales competition added JPY 11.2 billion of cost, and the Middle East conflict removed about JPY 19 billion.
In other words the entire operating improvement, and more, came from the exchange rate. On a constant currency basis the business lost money at the operating line, and management’s own forecast says so.
Volume is the problem
Global sales in the half were 358,000 units, down 26,000. Mitsubishi attributes the decline to three things: shipments halted by the Middle East conflict, high fuel prices accelerating the shift to electric, and price competition triggered by an expansion of low-cost electric supply.
The regional detail is more useful than the total. Japan held up, helped by the Delica line, and the new Pajero, due on 17 December, has already taken more orders than the full-year target. In ASEAN, the Destinator and Xforce Hybrid worked in some markets but the region fell on competitive pressure. Australia lost volume and share after several models were discontinued, and Mitsubishi plans to respond with the ASX VR-e battery electric model and the new Pajero. Brazil was flat, with the Triton and Destinator carrying the line against low-priced Chinese electric imports. Europe fell on small SUV price competition and discontinued models, with the Outlander PHEV and Eclipse Cross left to do the work.
Full-year volume guidance is cut by 93,000 units to 764,000, with revenue and operating profit guidance reduced accordingly.
The structural read
Mitsubishi is a mid-scale Japanese manufacturer whose profit pool sits in ASEAN and Australia, two regions where Chinese battery electric cars have moved from curiosity to price setter in under three years. The company’s product response is a mix of plug-in hybrids, a revived Pajero badge and one battery electric compact SUV.
President and COO Keisuke Kishiura told the results briefing that the Middle East conflict and higher fuel prices have accelerated electrification, and that market structure is shifting under expanded electric choice, price competition and national policy. The plan is to accelerate hybrid and electric responses and lean on brand-specific products.
That is a defensible strategy for a company of this size. It is also a strategy that depends on the yen staying weak and on ASEAN buyers staying loyal while cheaper Chinese models arrive. Neither is a control variable.
Editor’s note: This is an adapted translation of the original Gasgoo report. It has been trimmed and restructured for readability for an international business audience. The full original (in Chinese) is at https://auto.gasgoo.com/news/202611/9I70477243C108.shtml.