TOKYO -- Mitsubishi Motors Corp. will extend a suspension of production in China beyond May, the Yomiuri newspaper reported on Tuesday, highlighting struggles the Japanese carmaker faces in the world's largest auto market.
Mitsubishi Motors is discussing when to resume production in China with its local partner, a company spokesperson said, adding that there was nothing he could say about the timing.
The Japanese company said last month it had halted production of the Outlander crossover in China for three months until the end of May and would take a $78 million charge for slowing sales at a joint venture with state-owned GAC Group.
SUVs and crossovers represent the largest portion of the electric vehicle market in China, where price cuts and the rollout of new models from local and foreign brands have cannibalized sales of gasoline-powered light vehicles.
Mitsubishi Motors, which set up a China unit in 2012, has not decided when to restart production in the country, Yomiuri said, citing multiple unnamed sources.
The company and other Japanese automakers have faced a sales crisis in China as a rapid shift to EVs has led to a slump in purchases of internal combustion engine vehicles. Mitsubishi Motors had introduced a redesigned Outlander model in China last December.
