In the highly competitive Chinese automotive market, success in 2011 required more than just superior hardware. A balanced approach combining incentives and strategic marketing was essential.
In 2011, Mitsubishi Motors faced a turning point in the Chinese automotive market. With the end of a decade-long boom and shifting consumer preferences, Mitsubishi's strategic focus on SUVs and innovative marketing campaigns helped it stand out. This article delves into Mitsubishi's approach, highlighting key statistics, market trends, and the company's unique strategies that contributed to its success.
The Chinese automotive industry experienced a significant shift in 2011. After a decade of rapid growth, the market faced new challenges. Government incentives, such as purchase subsidies and energy-saving grants, began to phase out, raising the bar for automakers. Despite these changes, the SUV segment continued to thrive, with a 21.6% year-on-year sales increase, far outpacing the overall market growth (source: China Association of Automobile Manufacturers).
The SUV market's robust performance contrasted sharply with the sluggish passenger car market. Industry experts predicted that SUVs would become a crucial segment in China's second-tier cities. This trend was driven by a growing preference for high-end models, positioning Mitsubishi as a key player in the import market.
Mitsubishi Motors (China) Co., Ltd. was established in February 2009, with initial sales of 12,000 vehicles. By 2010, the company achieved a 100% growth rate, selling 25,000 units. By the end of 2011, Mitsubishi's import lineup included four strong SUV models: the ASX, Outlander, Pajero, and Pajero Sport. These models helped establish Mitsubishi's reputation as an "SUV expert" in the high-end import market.
Unlike many joint ventures and import brands, Mitsubishi focused exclusively on the SUV segment. Each year, the company introduced new models to cater to different consumer needs and purchasing power:
This strategy allowed Mitsubishi to cover a wide range of market segments, from entry-level to high-end, meeting diverse consumer demands.
Mitsubishi's success in China was rooted in its clear brand positioning. The company emphasized performance, off-road capability, and a champion spirit. Unlike competitors who flooded the market with mediocre products, Mitsubishi focused on unique, character-driven vehicles. Whether it was the panoramic sunroof-equipped ASX or the high-speed, off-road capable Pajero, Mitsubishi's commitment to distinctive products was evident.
In 2011, Mitsubishi intensified its efforts to engage Chinese consumers directly. The company organized "Feel, Move, Force" driving experience events in over 10 cities, including Guangzhou, Xi'an, Chengdu, and Hangzhou. These events allowed consumers to test drive Mitsubishi's SUVs on challenging terrains, showcasing the vehicles' capabilities.
Participants could experience:
Each test drive vehicle was equipped with a car DVD commentary, providing off-road enthusiasts with detailed insights into Mitsubishi's unique features.
Mitsubishi also participated in regional auto shows to strengthen brand awareness. According to Minoru Yoshioka, Deputy General Manager of Mitsubishi Motors (China) Co., Ltd., these events helped rekindle Chinese consumers' memories of the Mitsubishi brand. The company planned to continue participating in major auto shows and organizing events to provide more opportunities for consumers to experience Mitsubishi vehicles firsthand.
By 2012, Mitsubishi had established 115 sales and service outlets across China, covering all provinces and major cities. Each outlet underwent rigorous training and assessment at centers in Beijing, Chengdu, and Guangzhou. A new training center in Shanghai was also set to open in 2012.
Recognizing the importance of service quality, Mitsubishi extended the warranty period for its SUVs (excluding the EVO) from two years or 50,000 km to five years or 100,000 km. This comprehensive warranty covered all vehicle parts, not just major components.
To address the issue of spare parts availability, Mitsubishi built a large supply center in Shanghai. Starting in November 2011, the company promised to deliver emergency parts to dealers within 36 hours, ensuring quick and efficient service for customers.
Mitsubishi's strategic focus on SUVs, clear brand positioning, and innovative consumer engagement helped the company navigate the challenges of the Chinese automotive market in 2011. By prioritizing service quality and expanding its market presence, Mitsubishi set the stage for continued success in the years to come.
For more insights into the automotive industry, visit China Association of Automobile Manufacturers and Mitsubishi Motors.
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