Why NZ's most popular car brand of 2022 is struggling in 2023
Wednesday, 5 April 2023
Mitsubishi Motors New Zealand enjoyed a thoroughly successful, record-breaking year in 2022, resetting its local delivery benchmark in becoming the country’s most popular new passenger car company and second most popular outright behind Toyota.
Fast forward to today, however, and Mitsubishi has struggled to repeat its success. Although the brand believes there is a good reason for that.
In 2022, a total of 23,886 new Mitsubishis had been registered in the country. Some 17,256 of those were passenger vehicles like the Eclipse Cross, ASX, and Outlander – the latter going on to be New Zealand’s best-selling passenger car of the year.
The first three months of 2023 have shown a significant decline in local Mitsubishi registrations. Year-to-date, Mitsubishi sits fourth overall in combined passenger and commercial vehicle sales.
In passenger vehicle market share alone, it is fifth behind Toyota, Kia, Hyundai, and Suzuki. Its extremely popular Outlander has dropped from the lead of the passenger car market to eighth, with the Eclipse Cross now the leading Mitsubishi in sixth.
**READ MORE:
* Ranger heads March registrations but EVs are closing in
* First drive: Mahindra XUV700
* Electric ute part of Mitsubishi's 16-model onslaught
* Pint-sized favourite survives New Zealand's hatchback cull
**
In percentage terms, the brand’s monthly average of 950 new vehicles registered monthly this year thus far represents a drop of more than 50% on its monthly average of 1,990 in 2022. Average monthly Outlander deliveries have plummeted by more than 70%.
Speaking to Stuff, Mitsubishi Motors New Zealand head of marketing Reece Congdon said that the company is currently grappling with supply constraints – an ongoing issue for numerous local automotive distributors.
“Like many brands, supply is playing a major part here,” said Congdon.
Local supply shortages have been an ongoing issue for the industry for the duration of the Covid-19 pandemic, triggered by a semiconductor shortage and exacerbated by Russia’s invasion of Ukraine and spiralling inflation.
Congdon notes that whilst Outlander registrations are low, that isn’t a reflection of a decline in demand. “Our dealerships are still reporting strong enquiry and orders for Outlander, so we’re excited [about] what the future holds once our boats arrive,” he added.
Congdon notes that some of the rival car companies that have fared better in the first quarter of 2023 are doing so off the back of vehicles that were ordered and paid for well in advance.
“We’re seeing some notable brands posting impressive numbers as their ships come into the harbour. Unfortunately, we’ve seen our supply severely constrained over this quarter, but have strong supply coming onboard as the year goes on,” said Congdon.
“The car industry is currently a game of arrivals and in many cases, what we’re seeing is sales from some brands that were transacted up to 12 months ago.”
There had been a warning that Mitsubishi Motors New Zealand had supply shortages coming down the pipe, when the brand confirmed in December that waiting times for fresh Outlander PHEV orders could extend to 12 months.