Why Did Mitsubishi Stop in India? Unpacking the Exit of a Legend from the Indian Auto Market

Flip back to the early 2000s, and you’ll spot a lot of Pajeros and Lancers cruising Indian roads. Mitsubishi had nailed that cool factor. People still talk about the Lancer’s handling and the Pajero’s tough-as-nails image. But if you walk into any Mitsubishi dealership today, there’s only dust. What happened?

You don’t just disappear from a country as car-hungry as India overnight. There’s a bunch of angles to this: competition, messed-up product launches, and even dealer squabbles made the ground shaky. If you’re a car enthusiast or thinking about why big brands exit certain markets, Mitsubishi’s story in India throws up some lessons and warnings that are just too interesting to skip.

This isn’t about nostalgia alone; it’s a peek into why even reliable global giants can lose their grip. So, what really drove Mitsubishi out? Let’s unpack what went right and then, very quickly, what went wrong.

• The Glory Days: Mitsubishi’s Early Success in India
• Changing Tides: Market Competition Heats Up
• The Product Problem: Where Did the Models Go Wrong?
• Dealer Troubles and Service Woes
• Policy Shifts and Consumer Preferences
• What Now? Lessons for Other Automakers

The Glory Days: Mitsubishi’s Early Success in India

Back in 1998, Mitsubishi entered the India car market through a partnership with Hindustan Motors, and it was seriously exciting for car lovers. The first star was the Lancer, which looked way sportier than the boxy sedans everyone was used to. It wasn’t just about looks—the Lancer had a reputation for solid handling and reliability, and its diesel version got snapped up by taxi fleets and personal buyers alike. If you drove a Lancer in the early 2000s, people noticed. Simple as that.

When the Pajero rolled in next, it actually made SUVs cool in India before anyone was talking about road presence or off-roading. The Pajero was known for tackling bad roads like a boss, and grew into a favorite for politicians, business tycoons, and anyone who wanted to arrive in style. The Outlander and Cedia built on this legacy, even if they never reached the Lancer’s legend status.

Mitsubishi found early success by offering features people just didn’t see in locally-made cars back then: ABS brakes, air bags, and even snazzy alloy wheels. Check this out:

For the first few years, Mitsubishi packed showrooms and its cars were considered a bit aspirational. Auto magazines and Sunday tabloids hyped up its international reputation, and buyers felt like they were owning something global and premium—at a time when “foreign” often meant “better.” Not bad for the late ‘90s and early 2000s, right?

Changing Tides: Market Competition Heats Up

Jump to the late 2000s, and the Indian automotive industry looked completely different. New players didn’t just show up—they came in swinging. Maruti Suzuki, Hyundai, Tata, and later on, Mahindra, pulled out all the stops. They weren’t just offering regular cars; they brought more features, better fuel efficiency, and price tags that made sense, especially for budget-focused Indian buyers.

When compact sedans and fuel-efficient hatchbacks flooded the market, Mitsubishi’s classic models began feeling dated and expensive in comparison. The Mitsubishi Lancer, iconic as it was, couldn’t keep up with the bells, whistles, and mileage numbers of Maruti Dzire or Hyundai Verna. Pajero’s sales dropped too as more modern SUVs started popping up, many using smarter tech and much cheaper maintenance.

Just look at the numbers:

Mitsubishi was barely a blip, while rivals kept growing year after year. The gap only widened as others kept launching new models nearly every year, designed for Indian roads and wallets.

Another big thing? Japanese brands like Honda and Toyota landed with cars made specifically for local buyers. Mitsubishi, on the other hand, just kept pushing a few older models. That made it look out of sync when the rest of the car market was rapidly evolving. Miss the changing winds, and you’re pretty much out of the race before you even know it.

The Product Problem: Where Did the Models Go Wrong?

Mitsubishi kicked things off strong in India with models like the Lancer and Pajero. People loved these cars for their performance, reliability, and road presence. The Lancer, in particular, had its own fan club thanks to its smooth drive and easy-to-tune engine. But guess what? While the world moved ahead, these cars hardly changed. The designs got stale, and the features lagged behind what others were offering.

Look at what rivals were doing. Companies like Hyundai, Maruti Suzuki, and even Toyota kept bringing out fresh models, facelifts, and tech—touchscreens, more efficient engines, better safety gear. Meanwhile, Mitsubishi stuck to old formulas. The Cedia came out, but that was just a fancy Lancer clone with new bumpers. Even the Pajero Sport, launched much later, felt outdated inside when compared to the Ford Endeavour or Toyota Fortuner. It’s almost like Mitsubishi’s playbook was stuck in slow motion.

Pricing was another headache. The Pajero and Outlander were seriously expensive for what they offered, especially when you consider the lack of fancy features or lower running costs. People started asking, “Why pay more for less?”

Check out how the competition stacked up between 2012-2015, when everyone else pushed updates, but Mitsubishi just watched from the sidelines:

On top of all that, no diesel option for the Lancer in a market obsessed with diesel? That alone was enough to scare away buyers. Mitsubishi simply missed reading the Indian market right. People asked for fuel efficiency, new tech, and value. Mitsubishi offered nostalgia.

For a brand that started strong in the Indian automotive industry, dropping the ball on product innovation turned out to be a deal-breaker. When your lineup stays stuck in time as everyone else speeds ahead, you don’t just lose customers—you make them forget you were there in the first place.

Dealer Troubles and Service Woes

If you ask anyone who owned a Mitsubishi in India, almost all will tell you about their hard time finding good service centers or spare parts. Mitsubishi had a seriously thin dealer network. By 2018, the brand had less than 40 dealerships across a country where top carmakers boasted hundreds. Many of Mitsubishi’s showrooms and workshops were clustered in a few cities, forcing owners to drive long distances for even basic servicing.

The heart of the problem? Mitsubishi never set up its own direct operations. Everything ran through its partner, Hindustan Motors, which was already struggling. As their problems grew, the dealerships also started shutting down. This meant potential buyers just didn’t have easy access to check out cars or get them serviced.

Things went downhill fast. Owners complained about waiting weeks—sometimes months—for simple spare parts. Local mechanics weren’t always trained for Mitsubishi’s models, making repairs both tricky and expensive. Fun fact: Some owners of the Lancer or Pajero started hoarding spare parts or importing them at extra cost just to keep their cars running!

Here’s an eye-opener: according to a 2017 report, customer satisfaction for Mitsubishi after-sales service was near the bottom versus rivals in the Indian automotive industry. Here’s a quick look:

All this created a trust gap. Buyers wondered, “Will I even find a place to fix my car after a breakdown?” For car brands, especially in India, service and support make or break sales. In the end, Mitsubishi just couldn’t keep up. The lack of strong after-sales support drove many potential buyers to its competitors, sealing its fate in the India car market.

Policy Shifts and Consumer Preferences

Here’s where the Indian automotive industry started moving at breakneck speed, but Mitsubishi didn’t keep up. Around the mid-2010s, the Indian government began pushing stricter regulations like Bharat Stage (BS) emission standards. These got tougher in 2017 with BS-IV, and then BS-VI hit in 2020, raising the bar even higher. Any company wanting to sell here needed to update engines and tech quickly. Mitsubishi? They fell behind. Their Pajero still had an older diesel engine that didn’t meet new rules, and no upgrades were in sight.

To make things worse, India’s focus on ‘Make in India’ and more localization squeezed out brands that imported cars or relied too much on CBUs (completely built units). Local assembly and manufacturing became the winning formula for price-sensitive buyers. Mitsubishi, by sticking with imports and not building a strong local plant, got pushed out of the price game.

But policies weren’t the only snag. Consumer choices flipped fast. Remember when sedans like the Lancer ruled? That all changed. People started craving compact SUVs and crossovers. Models like Hyundai Creta and Maruti Brezza took over. The market for Mitsubishi’s classic offerings just shrunk, fast. They didn’t launch new models to match what buyers actually wanted.

Add to this recipe a growing push for more fuel efficiency, smart gadgets, and value-for-money tags. Mitsubishi dragged their feet here, too. New-age buyers wanted touchscreens, safety features, and Apple CarPlay. Old-school interiors and engines just didn’t cut it.

"India's evolving policies required not just compliance, but quick adaptation, and brands who missed that boat paid dearly. The market waits for no one." – Autocar India, 2021

The takeaway: A mix of government policy changes and fast-moving consumer preferences set the stage for Mitsubishi’s India exit. If you’re running a business here, you better stay sharp and move fast, or you’ll be yesterday’s news—no matter how legendary your badge is.

What Now? Lessons for Other Automakers

If there’s one takeaway from Mitsubishi’s exit, it’s that even legendary names can run into trouble if they stop listening to what the market wants. The Indian automotive industry is brutal—there’s no room for playing old tunes while everyone else turns up the volume with new tech and smarter features.

First, nothing stings more than ignoring product updates. Mitsubishi stuck too long with aging models like the Lancer and Pajero when rivals like Hyundai and Maruti Suzuki brought in fresh designs almost every other year. According to SIAM data, car buyers in India now expect a model refresh every 3-4 years; if you lag, you fall off the radar.

Another must: a strong dealer and service network. Mitsubishi’s small network meant long drives for real service and, sometimes, frustrated buyers facing parts shortages. For comparison, Maruti Suzuki has over 3,000 service points across India, while Mitsubishi had under 60 during its last years. Not surprisingly, buyers picked brands they could fix easily—no one wants a car that turns into a lawn ornament just because a basic part runs out.

Let’s talk price sensitivity. Indian buyers watch every rupee, especially in the mass market. Mitsubishi found itself stuck—its cars weren’t cheap enough to lure the masses, and not premium enough to compete with Toyota or Honda. Brands coming in today should nail their pricing and offer value with features that matter locally, like fuel efficiency and infotainment options.

• Keep products fresh: Don’t let models gather dust—regular upgrades are a must.
• Expand service touchpoints: Make sure anyone in any city can get parts and repairs quickly.
• Listen to local trends: What works in Japan or Europe won’t always work in India. Tailor your offers.
• Smart pricing: Balance affordability and features. Don’t price yourself out of the game.

Finally, pay attention to shifting government policies—especially emission norms and incentives for electric vehicles. In the last decade, several foreign automakers, including Ford and GM, also pulled out as the cost of staying compliant soared and returns didn’t add up.

The Mitsubishi story is a blunt reminder—innovate, stay nimble, and connect with the Indian market, or risk fading out, no matter how much global legacy you drag behind.

About author Aarav Tandon

I am a manufacturing engineer specializing in streamlining production processes and reducing waste. I have a keen interest in exploring the manufacturing landscape in India and often write about innovative practices in this sector. My work involves collaborating with a diverse team to optimize efficiency and implement sustainable practices. I enjoy sharing insights and stories from the field with a wider audience through my writing.