Mitsubishi's Cheap-Car Gamble
Mitsubishi Motors' president, Osamu Masuko, has every reason for optimism: The Japanese carmaker finally turned a profit for the first time in four years. Boosted by the news, Masuko revealed that the company plans to introduce a no-frills economy car for developing Asian markets in the near future.
Leading Japanese economic magazine Nikkei Weekly reported that Mitsubishi would like to develop a sub-$8,500 car for Asian markets based on the Colt hatch. Honda has successfully captured a segment of the ASEAN (Thai, Malaysian, Indonesian) markets with its City, which is based on the Jazz. The City, also known as the Fit Aria, is now also available in Japan and Europe.
Toyota has tried the same formula with its Vios, which is available in China and some other Asian markets. Lately French carmaker Renault has expanded its cheap Logan into India, where it will be sold under the Nissan banner.
Mitsubishi is not a newcomer when it comes to developing markets. Its Freeca, a rather boxy utilitarian minivan which was originally developed in the 1990s, became a hit all over Asia and spawned many rivals.
