Mitsubishi Motors Swings to Profit in First Half

Mitsubishi Motors Corporation reported a net profit of ¥3.0 billion for the first half of fiscal year 2026, reversing a ¥5.2 billion loss from the same period last year. This turnaround, detailed in the company’s quarterly report filed today, comes despite a challenging operating environment marked by rising fuel prices and a rapidly accelerating shift towards electric vehicles.

The company’s revenue increased by 4% year-over-year to ¥1.309 trillion, driven by strong sales in Japan and the Middle East, partially offset by declines in ASEAN and Australia. Operating profit also saw a substantial improvement, reaching ¥30.6 billion, a ¥13.3 billion increase from the prior year. This growth demonstrates the company’s ability to manage costs and capitalize on favorable exchange rate effects, even as the broader automotive market faces inflationary pressures.

While sales volume decreased in several key regions, including ASEAN and Australia, the company managed to boost overall revenue. The filing notes that the speed and scale of the transition to electric vehicles is exceeding expectations, intensifying price competition. Despite these pressures, Mitsubishi Motors is navigating the shift, with ongoing investments in research and development totaling ¥56.5 billion during the interim period. This figure remained consistent with prior periods, suggesting continued commitment to innovation.

Mitsubishi Motors’ financial position remains stable, with total assets at ¥2.337 trillion as of September 30, 2026. However, cash and deposits decreased by ¥1.384 billion to ¥3.005 billion. The company also maintained a commitment line of credit with 20 financial institutions to ensure liquidity. The positive swing to profit, coupled with increased revenue, signals a strengthening financial footing for Mitsubishi Motors as it navigates the evolving automotive landscape. The improvement in profitability outpaced the broader industry trend, as evidenced by the reduction of the loss from the previous year's interim report.