Mitsubishi Motors' cheating on fuel economy has ironically helped rivals in an area where the automaker already lagged, casting a shadow over its prospects in a shrinking minicar market.
Sales of the four affected models have been suspended since the company's April 20 admission: the eK Wagon, the eK Space, the Dayz and the Dayz Roox. Mitsubishi Motors builds the latter two for Nissan Motor.
The fallout has hit domestic sales hard. The Dayz tumbled from the third-best-selling minicar in March to 11th place in April, according to the Japan Light Motor Vehicle and Motorcycle Association. The eK series sank from No. 12 to No. 19.
Sales of the nation's No. 1 minicar, the N-Box from Honda Motor, rose 14.4% on the year in April. And the second-ranked Tanto from Daihatsu Motor jumped 36.7%.
"Many customers, especially seniors, come in looking for minicars," a Nissan dealership official said.
"We may lose customers to competitors while we cannot sell the Dayz." This fear will become a reality if the suspension drags on.
The scandal is also putting the brakes on efforts by Mitsubishi Motors to improve fuel-saving technologies, where the company's failure to keep up amid intensifying competition likely led the automaker astray in the first place. Fuel efficiency is key to attracting minicar drivers, who are generally sensitive to ownership costs.
Mitsubishi Motors is investigating the matter in hopes of resuming sales soon. But the process will inevitably take time, since the company must compensate customers, dealerships and parts suppliers.
On top of all this, the minicar market is contracting. Suzuki Motor Chairman Osamu Suzuki said Tuesday that the market is expected to reach between 1.6 million and 1.8 million cars in fiscal 2016.
The industry association projected in April that the market will edge down from fiscal 2015 levels to 1.8 million units.
One headwind is the rising fuel efficiency of compact vehicles, a class larger than minicars. New-minicar sales have also been weighed down by the intense battles waged by Suzuki and Daihatsu for market share since before the April 2014 consumption tax hike. This competition has increased the supply of practically brand-new minicars sold as used.
Sales of the nation's No. 1 minicar, the N-Box from Honda Motor, rose 14.4% on the year in April. And the second-ranked Tanto from Daihatsu Motor jumped 36.7%.
"Many customers, especially seniors, come in looking for minicars," a Nissan dealership official said.
"We may lose customers to competitors while we cannot sell the Dayz." This fear will become a reality if the suspension drags on.
The scandal is also putting the brakes on efforts by Mitsubishi Motors to improve fuel-saving technologies, where the company's failure to keep up amid intensifying competition likely led the automaker astray in the first place. Fuel efficiency is key to attracting minicar drivers, who are generally sensitive to ownership costs.
Mitsubishi Motors is investigating the matter in hopes of resuming sales soon. But the process will inevitably take time, since the company must compensate customers, dealerships and parts suppliers.
On top of all this, the minicar market is contracting. Suzuki Motor Chairman Osamu Suzuki said Tuesday that the market is expected to reach between 1.6 million and 1.8 million cars in fiscal 2016.
The industry association projected in April that the market will edge down from fiscal 2015 levels to 1.8 million units.
One headwind is the rising fuel efficiency of compact vehicles, a class larger than minicars. New-minicar sales have also been weighed down by the intense battles waged by Suzuki and Daihatsu for market share since before the April 2014 consumption tax hike. This competition has increased the supply of practically brand-new minicars sold as used.
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