Mitsubishi has lowered its sales and profit forecasts for the fiscal year ending March 31, 2027, as the ongoing Middle East conflict, shipping disruptions and elevated oil prices add pressure to its business. The automaker is also facing challenges from its limited electrified vehicle lineup, leaving it less equipped to capitalize on growing demand for hybrids and electric vehicles.

Mitsubishi Lowers Its 2027 Profit and Sales Outlook

Mitsubishi now expects operating profit to decline 7.3% year over year to ¥70 billion (about $441.7 million at current exchange rates).

The revised projection marks a significant reversal from the company’s previous forecast, which anticipated 19% growth in operating profit to ¥90 billion ($567.9 million).

The automaker has also reduced its global sales expectations. Mitsubishi now projects annual sales of 764,000 vehicles, representing a 4.1% decline, compared with its earlier forecast of 857,000 vehicles and 7.5% growth.

Limited Electrified Lineup Creates Additional Pressure

Mitsubishi’s relatively limited selection of electrified vehicles has made it more difficult to benefit from increasing interest in hybrids and EVs. These vehicles offer improved fuel efficiency, while fully electric models eliminate the need for gasoline.

Instead, the automaker is placing a major bet on the all-new Pajero, previously known as the Montero in the U.S.

The returning model will be powered by a 2.4-liter turbodiesel inline-four engine and is expected to reach approximately 100 markets. However, it will launch without a hybrid option.

A potential U.S. launch for the returning Pajero nameplate has not yet been confirmed.

Mitsubishi Expands Its Electric and Truck Plans

Despite the absence of a hybrid option for the Pajero, Mitsubishi has introduced a new electric vehicle, the Eclipse Sportback, based on the Nissan Leaf.

The company is also developing a new midsize pickup truck in collaboration with Nissan. The project could give Mitsubishi an opportunity to benefit from strong demand for trucks in the U.S. market.

North American Sales Face a Different Picture

Mitsubishi expects its North American sales to fall 7% to 154,000 vehicles. However, its U.S. sales performance during the first nine months of the year offers a more mixed picture.

U.S. sales declined 6.6% year over year, with much of the decrease attributed to the discontinuation of the Mirage.

Meanwhile, sales of Mitsubishi’s remaining models increased 14.3%, indicating that the company’s other vehicles continued to record growth despite the overall decline.

Mitsubishi Shifts Focus Toward Mature Markets

Mitsubishi reportedly plans to direct more resources toward mature markets, including Japan, Australia and the United States.

The strategic shift comes as competition from Chinese automakers intensifies in Southeast Asia, a region where Mitsubishi has historically depended on sales.

Electrified Vehicles Remain Part of Mitsubishi’s Strategy

The ongoing conflict in the Middle East adds another layer of uncertainty to an already challenging automotive market, raising further concerns for Mitsubishi’s revised financial outlook.

However, Mitsubishi COO Keisuke Kishiura said the company is responding to these pressures by accelerating the development of electrified vehicles, including hybrids.

The move signals that Mitsubishi intends to expand its electrified vehicle development as it works to address its current challenges and strengthen its position in key markets.