Thai-Built Mirage Key for Mitsubishi in ASEAN Markets

BANGKOK – Mitsubishi’s new Mirage will make its local public debut at next week’s 33rd Bangkok International Motor Show, kicking off an extensive global rollout taking place throughout 2012.

The new model is considered critical to Mitsubishi’s fortunes both here and in other markets in the Association of Southeast Asian Nations region.

“I strongly believe that we will succeed with this model introduction,” Mitsubishi President Osamu Masuko tells media here in a preview of the Mirage.

Thailand is Mitsubishi’s second-largest global production hub, and Masuko sees the country’s importance increasing, especially in the post-tsunami landscape.

“In the past, the auto industry was centered on advanced countries,” he says. “Today, we see the focus moving to emerging countries.

“The Thailand market has made remarkable advances. We strongly believe in Thailand as an export hub.”

Mitsubishi was the first auto maker to export to other ASEAN markets from Thailand, Masuko notes, with shipments beginning in 1988.

“Thailand is increasingly making itself felt on the world stage and has grown into one of the leading manufacturing nations in the world,” he says. With government support, “we will keep expanding (here).”

To be built at a brand-new facility at Lam Chabang, the B-segment Mirage joins Nissan’s well-established March, Honda’s Brio and Suzuki’s Swift as part of the eco car program, a low-cost and fuel-efficient vehicle project the Thai government has nurtured through financial incentives.

With the Mirage and assembly plant both new, Mitsubishi has sent experienced staff to train the local workforce to ensure quality equals that of its Japanese facilities.

The Mirage arrives at a point when fuel prices, traditionally dampened by the state, are slowly rising as a result of climbing crude-oil prices.

Prachin Eamlumnow, president of the Bangkok auto show, predicted last week eco models would form the biggest slice of the roughly 40,000 cars expected to be sold during the exhibition, with the segment forecast to account for 15,000 units.

Mitsubishi has made the new Mirage a central plank of its strategy, which includes a drive to expand electric-vehicle sales. Much hinges on the success of the Mirage, and with Mitsubishi’s focus on emerging markets, a strong reception here is imperative.

Annual capacity will be 100,000 units, and this figure should be reached quickly. Thailand’s sales target is 2,000 vehicles a month, meaning the remaining 76,000 units of yearly capacity is earmarked for export.

Thai deliveries will begin next month, and the Mirage should reach all major ASEAN markets by the middle of the year. Like the March, the Mirage also will be shipped to Japan, arriving in June. Europe sales will follow by the end of the year.

Takashi Sato, general manager of Mitsubishi’s global small-car program, says the 5-seater is the lightest car in its class and boasts leading aerodynamics.

The use of high-strength steel results in a body that is 8%-13% lighter than its eco-car rivals, while the Mirage’s coefficient of drag is rated a best-in-class 0.29. Fuel consumption of 49 mpg (4.7 L/100 km) also beats its rivals, which hover near the 45 mpg (5.2 L/100 km) mark.

A 1.2L gasoline engine is standard and is mated with either a 5-speed manual or continuously variable transmission. Despite its low-cost intentions, it offers a decent mix of standard and optional features, including navigation, automatic air conditioning, push-button engine start, 60:40 split rear seats, multifunction instrument display, folding mirrors and a security system.

The Mirage is competitively priced at 380,000 baht ($12,300) for the entry-level 5-speed manual GL model, rising through five specification levels to the top-of-the-line  CVT-equipped GLS LTD at TB546,000 ($17,700).

Mitsubishi is offering early buyers a TB10,000 ($3,200) discount across all trim levels. The car also qualifies for the Thai government’s first-time buyer subsidy scheme, which reduces costs TB55,000-TB77,000 ($1,800-$2,500) depending on the model.

Initial local content will be 70%-80%, Masuko tells WardsAuto, but he expects that to rise to 90% within a year.

He also expects the Mirage to be built in China within two years, although a production location is yet to be decided. All Chinese production will be for domestic consumption, Masuko adds.

Fitting with Mitsubishi’s global EV strategy, an electric version also is likely within two years, the executive says. The EV could be built in Thailand if the supply chain here could support such a program.

"If battery manufacturers will produce in Thailand, we will consider producing here,” Masuko says, noting there is no such capacity in Thailand currently.