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GAC Mitsubishi

A former Chinese automobile manufacturing joint venture between Guangzhou Automobile Group and Mitsubishi Motors.

Last updated October 28, 2026

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Overview

GAC Mitsubishi was a Chinese automobile manufacturing joint venture established by Guangzhou Automobile Group, Mitsubishi Motors Corporation, and Mitsubishi Corporation. Founded on September 25, 2012, it became Mitsubishi Motors’ second vehicle-manufacturing joint venture in China after Soueast. The company was headquartered in Changsha, Hunan, and produced and sold Mitsubishi-branded passenger vehicles for the Chinese market. The original ownership structure was generally described as 50% for Guangzhou Automobile Group, 30% for Mitsubishi Motors, and 20% for Mitsubishi Corporation, although some contemporary accounts reported an alternative 50%, 33%, and 17% allocation. Vehicle production began in 2012. The company developed a manufacturing operation that reached a reported production capacity of 100,000 vehicles in 2016, and it began manufacturing engines in 2018. Its main Mitsubishi product range included sport utility vehicles such as the ASX, Outlander, Eclipse Cross, and, for part of the period, Pajero. It also produced the Mitsubishi Airtrek from the 2022 model year. GAC Mitsubishi also operated the Eupheme nameplate, under which it manufactured and sold plug-in hybrid and battery-electric vehicles. This gave the joint venture a presence in the emerging Chinese new-energy-vehicle segment, although the company remained primarily associated with Mitsubishi-branded sport utility vehicles. The business experienced a steep decline in sales after 2019. Annual sales were reported at approximately 133,000 vehicles in 2019, 75,000 in 2020, 66,000 in 2021, and 33,600 in 2022. In the first quarter of 2023, sales fell to 3,969 vehicles, a year-on-year decline of 58%. The deterioration reflected intensifying competition in China, rapid growth of domestic electric-vehicle manufacturers, and weakening demand for the joint venture’s model range. Mitsubishi Motors president Takao Kato denied in May 2023 that the company had already decided to leave China, while acknowledging the need for structural reform. Mitsubishi Motors announced on September 27, 2023, that it would withdraw from the Chinese joint-venture business because the company could not adequately respond to competition and no longer considered the venture commercially viable. Guangzhou Automobile Group subsequently announced a restructuring plan. The three shareholders were to provide additional funds to address obligations, while Guangzhou Automobile Group acquired Mitsubishi Motors’ 30% stake and Mitsubishi Corporation’s 20% stake for a nominal consideration of RMB 1. Production of Mitsubishi-branded vehicles was to stop, with the Changsha plant and related production capacity transferred for use by GAC Aion. The sales company was retained to support parts and after-sales service for existing GAC Mitsubishi customers. The former company was renamed Hunan Zhixiang Automobile Management Co., Ltd. on March 3, 2024. Guangzhou Automobile Group later announced a plan to transfer the company’s entire equity interest to its subsidiary GAC Aion, together with a capital injection. Accordingly, GAC Mitsubishi no longer operates as an independent Mitsubishi vehicle manufacturing joint venture, although its former sales and service organization continued to have relevance for existing vehicle owners.

History

GAC Mitsubishi was created on September 25, 2012, as a Chinese automobile manufacturing joint venture involving Guangzhou Automobile Group, Mitsubishi Motors Corporation, and Mitsubishi Corporation. It was Mitsubishi Motors’ second vehicle-manufacturing joint venture in China, following its relationship with Soueast. The commonly reported ownership arrangement gave Guangzhou Automobile Group 50%, Mitsubishi Motors 30%, and Mitsubishi Corporation 20%; other accounts described the Japanese partners’ combined interest differently, at 33% and 17% respectively. The company was established to manufacture and distribute Mitsubishi vehicles in China. Production began in 2012, with the Changsha facility later developing reported annual capacity of 100,000 vehicles. The company manufactured engines from 2018 onward and built a model range concentrated on sport utility vehicles and other passenger vehicles. Models associated with the operation included the ASX, Outlander, Pajero, and Eclipse Cross. The Pajero was produced through 2015, the ASX was produced from 2013, and the Outlander entered production in 2016. The Mitsubishi Airtrek was added from the 2022 model year. GAC Mitsubishi also operated the Eupheme brand. Its known products included the Eupheme PHEV and Eupheme EV, reflecting an attempt to participate in China’s growing market for electrified vehicles. Despite this expansion, the company’s commercial identity remained strongly linked to Mitsubishi’s conventional SUV portfolio. The joint venture’s sales weakened substantially after 2019. Reported annual sales were approximately 133,000 vehicles in 2019, 75,000 in 2020, 66,000 in 2021, and 33,600 in 2022. First-quarter 2023 sales were reported at 3,969 vehicles, down 58% year on year. The decline occurred amid increasingly intense competition in China, particularly from domestic manufacturers with rapidly expanding electric-vehicle offerings. In May 2023, Mitsubishi Motors president Takao Kato rejected reports that Mitsubishi had already decided to leave China, but said that structural reforms were necessary. Mitsubishi Motors subsequently changed course. On September 27, 2023, it announced that it would leave the Chinese joint venture, stating that competitive conditions made the business unable to respond effectively and that the venture was no longer expected to be profitable. Guangzhou Automobile Group’s restructuring plan, announced on October 24, provided for additional shareholder funding to address the joint venture’s obligations. Guangzhou Automobile Group would acquire the 30% interest held by Mitsubishi Motors and the 20% interest held by Mitsubishi Corporation for RMB 1, making the joint venture a wholly owned GAC subsidiary. The related sales company would continue to be jointly held for spare-parts and after-sales support for existing customers. Production of Mitsubishi-branded vehicles was discontinued as part of the restructuring. GAC Aion was designated to take over the relevant production capacity, while available equipment could be sold to GAC Aion and the factory land and buildings leased to it. On March 3, 2024, GAC Mitsubishi Motors Co., Ltd. was renamed Hunan Zhixiang Automobile Management Co., Ltd. Guangzhou Automobile Group then announced a plan to transfer all equity in the renamed company to GAC Aion and provide additional capital. These changes ended GAC Mitsubishi’s existence as an operating Mitsubishi vehicle manufacturing brand, while preserving arrangements for servicing vehicles already sold.

  • 2024

    Company renamed

    [1]

    The former GAC Mitsubishi legal entity was renamed Hunan Zhixiang Automobile Management Co., Ltd. on March 3.

  • 2023

    Mitsubishi announces exit from the joint venture

    [1]

    Mitsubishi Motors announced on September 27 that it would withdraw from the Chinese joint-venture business.

  • 2023

    Restructuring transfers future production to GAC Aion

    [1]

    GAC Group announced a restructuring in October that ended Mitsubishi-branded production and prepared the Changsha capacity for GAC Aion.

  • 2022

    Mitsubishi Airtrek enters production

    [1]

    The Mitsubishi Airtrek was produced by GAC Mitsubishi from the 2022 model year.

  • 2018

    Engine manufacturing begins

    [1]

    GAC Mitsubishi began manufacturing engines in addition to assembling vehicles.

  • 2016

    Outlander production and expanded capacity

    [1]

    Outlander production was recorded from 2016, when the plant was reported to have capacity for 100,000 vehicles annually and produced 56,700 vehicles.

  • 2013

    ASX production begins

    [1]

    The Mitsubishi ASX entered production under the GAC Mitsubishi operation.

  • 2012

    Joint venture founded

    [1]

    Guangzhou Automobile Group, Mitsubishi Motors, and Mitsubishi Corporation established GAC Mitsubishi on September 25, 2012. Vehicle production began during the same year.

Products and positioning

A mainstream-to-mid-market Chinese passenger-vehicle manufacturer and Mitsubishi brand operator, with a product focus on sport utility vehicles and a later expansion into electrified vehicles.

  • Sport utility vehicle · 2013

    Mitsubishi ASX

    The ASX was one of GAC Mitsubishi’s compact sport utility vehicles and was produced from 2013. It formed part of the company’s effort to build a locally manufactured Mitsubishi SUV range for the Chinese market.

  • Sport utility vehicle · 2016

    Mitsubishi Outlander

    The Outlander was a core Mitsubishi model produced by GAC Mitsubishi from 2016. It represented the company’s principal mid-size SUV offering during the period when the joint venture had its strongest market presence.

  • Sport utility vehicle

    Mitsubishi Pajero

    The Pajero was included in the company’s earlier Mitsubishi vehicle range and was produced through 2015. It connected the joint venture’s portfolio with Mitsubishi’s established four-wheel-drive and SUV heritage.

  • Sport utility vehicle

    Mitsubishi Eclipse Cross

    The Eclipse Cross was another Mitsubishi model associated with GAC Mitsubishi’s Chinese lineup. Available references confirm its inclusion in the range, but do not establish a precise local production period.

  • Sport utility vehicle · 2022

    Mitsubishi Airtrek

    The Airtrek entered production under GAC Mitsubishi from the 2022 model year. It was introduced late in the joint venture’s life as the company faced falling sales and increasing competition from Chinese electric-vehicle manufacturers.

  • Plug-in hybrid vehicle

    Eupheme PHEV

    The Eupheme PHEV was sold and manufactured under the Eupheme brand operated by GAC Mitsubishi. It extended the joint venture into plug-in hybrid vehicles and the Chinese new-energy-vehicle market.

  • Battery-electric vehicle

    Eupheme EV

    The Eupheme EV was the battery-electric product associated with GAC Mitsubishi’s Eupheme brand. It represented the company’s battery-electric offering alongside the plug-in hybrid Eupheme PHEV.

Controversies

  • 2023

  • 2022

  • 2020

  • 2020

    Mitsubishi announces recall of 3,692 vehicles in China

    Mitsubishi Motors Sales (China) and GAC Mitsubishi announced a recall of 3,692 Outlander vehicles in China over a potential rear parking brake hazard. According to the announcement, water could enter the brake caliper and cause corrosion that may prevent the parking brake from fully engaging. The recall was set to begin on December 10, 2020.

  • 2020

    GAC Mitsubishi recalls 174,500 vehicles

    GAC Mitsubishi filed a recall plan and began recalling 174,500 vehicles from certain Eclip​se Cross, Outlander and ASX production ranges. The fuel-pump impeller could deform and interfere with the pump housing, potentially preventing fuel delivery and causing the engine to stall. The company said it would replace the affected fuel-pump cores free of charge.

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Brand decisions

  • 2024

    Former joint-venture entity transferred toward GAC AionStrategy

    Background

    After Mitsubishi-branded production ended, GAC reorganized the former joint-venture entity and its industrial assets.

    Action taken

    Following the March 2024 renaming to Hunan Zhixiang Automobile Management Co., Ltd., GAC Group announced a plan to transfer 100% of the entity to GAC Aion and inject capital from its own funds.

    Aftermath

    The transaction further separated the former company from Mitsubishi vehicle production and aligned the entity with GAC’s electric-vehicle operations.

  • 2023

    Mitsubishi Motors decides to exit the Chinese joint ventureStrategy

    Background

    GAC Mitsubishi’s sales had fallen sharply, while competition in China intensified, particularly from domestic manufacturers and electric-vehicle brands. Mitsubishi Motors concluded that the joint venture was unlikely to remain profitable.

    Action taken

    Mitsubishi Motors announced on September 27, 2023, that it would withdraw from the Chinese joint-venture business.

    Aftermath

    The announcement led to a restructuring in which Guangzhou Automobile Group acquired the Japanese shareholders’ interests, Mitsubishi-branded production ended, and the plant’s capacity was prepared for GAC Aion.

  • 2023

    GAC Group restructures ownership and operationsM&A

    Background

    The joint venture required restructuring after Mitsubishi Motors’ exit decision and the continued deterioration of vehicle sales.

    Action taken

    GAC Group announced that it would acquire Mitsubishi Motors’ 30% stake and Mitsubishi Corporation’s 20% stake for RMB 1. The shareholders would jointly provide funds for debt repayment, while GAC Aion would take over the production capacity.

    Aftermath

    GAC Mitsubishi became a wholly owned GAC subsidiary in the announced structure. Its sales company was intended to continue parts and after-sales support for existing owners, while Mitsubishi-branded vehicle production stopped.

    Consideration for Mitsubishi Motors and Mitsubishi Corporation equity interests. RMB 1 (2023 restructuring announcement)

Recent events

  • Mitsubishi unveils Airtrek electric SUV in China[11]

    Reported:

    Mitsubishi unveiled the fully electric Airtrek SUV at the 2021 Guangzhou Auto Show in China. The company said it would be produced by the GAC Mitsubishi Motors joint venture in China, with sales starting in spring 2022.

  • Mitsubishi announces recall of 3,692 vehicles in China[8]

    Reported:

    Mitsubishi Motors Sales (China) and GAC Mitsubishi announced a recall of 3,692 Outlander vehicles in China over a potential rear parking brake hazard. Water could enter the brake caliper and cause corrosion that may prevent the parking brake from fully engaging. The recall was set to begin on December 10, 2020.

  • Unconfirmed

    Mitsubishi recalls certain Outlander vehicles in China[9]

    Mitsubishi Motors (China) Sales Co. and GAC Mitsubishi announced a recall of certain imported and domestically produced Outlander vehicles in China, citing a parking-brake caliper shaft corrosion issue that could reduce braking force and allow a parked vehicle to move. They said they would replace the affected rear parking brake calipers free of charge. The recall was set to begin on Dec. 10, 2020.

  • GAC Mitsubishi launches M-SPACE platform and app[12]

    GAC Mitsubishi launched its M-SPACE digital service platform and put the M-SPACE app online at the 2020 Guangzhou International Auto Show.

  • GAC Mitsubishi launches 2021 Eclipse Cross variant[13]

    Reported:

    GAC Mitsubishi launched the 2021 Eclipse Cross (奕歌) 燃情版, a new entry-level four-wheel-drive variant priced at 167,800 yuan.

  • GAC Mitsubishi announces brand slogan[14]

    Reported:

    GAC Mitsubishi announced its mid-term plan through 2022 and the brand slogan “驾驭探索之趣” (“Explore the joy of driving”).

  • GAC Mitsubishi recalls 174,500 vehicles[10]

    Reported:

    GAC Mitsubishi filed a recall plan and began recalling 174,500 vehicles from certain Eclip​se Cross, Outlander and ASX production ranges. The fuel-pump impeller could deform and interfere with the pump housing, potentially preventing fuel delivery and causing the engine to stall. The company said it would replace the affected fuel-pump cores free of charge.

Sources14 sources

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