Mitsubishi Motors Corp will end production in China after suspending its business indefinitely in July following years of poor sales.

(Sept 27): Mitsubishi Motors Corp will end production in China, Nikkei reported on Wednesday, after suspending its business there indefinitely in July following years of poor sales.

The Japanese carmaker is making final arrangements with its Chinese venture partner Guangzhou Automobile Group Co to cease manufacturing, according to the report, which didn’t cite anyone.

A Mitsubishi Motors spokesperson said the company is “currently discussing future plans among shareholders and nothing is finalised as yet”.

Mitsubishi Motors in July said it had halted its China business indefinitely and was going to lay off staff. A company memo that was circulated on Chinese social media that month said sales had fallen far below expectations in a market rapidly shifting to electric vehicles (EVs).

Mitsubishi’s wobbles in China echo the struggles of other Japanese carmakers, which have been slow to offer EVs and have lost market share to new competitors like Tesla Inc and BYD Co.

Honda Motor Co and Nissan Motor Co sales in China have been falling for at least two years while Toyota Motor Corp’s deliveries last year declined for the first time in a decade.

Mitsubishi Motors Chief executive officer Takao Kato said in May that it was clear the company needed to revisit its strategy in China.