Mitsubishi to Discontinue Mirage and Exit Sedan Market in the U.S.
Mitsubishi Motors Corp. is discontinuing the Mirage and exiting the sedan market in the U.S.
Mitsubishi Motors Corp. has announced that it will cease sales of the Mirage, a subcompact car available as both a four-door hatchback and a sedan, in the U.S. market by mid-decade. The decision comes as the automaker prepares to revamp its lineup with new electric and redesigned crossover models. The Mirage offered affordable transportation at a low price, starting at $17,340 including shipping, making it the only vehicle in the U.S. that transacted for under $20,000 in July, according to Cox Automotive. However, declining sales and intense competition in the subcompact sedan segment have led to the discontinuation of the Mirage. Mitsubishi plans to introduce nine new electrified models globally over the next five years and invest $10 billion in electrified vehicles and battery production through 2030. It remains unclear whether Mitsubishi will replace the Mirage with another vehicle in the U.S. market.
Similar to other automakers such as Buick, Ford, and Lincoln, Mitsubishi is abandoning sedans to focus on crossovers. The production of the Mirage for the U.S. market will end in late 2025, with no plans for a next-generation model, as reported by AutoForecast Solutions. In the first half of the year, Mirage sales in the U.S. dropped by 44 percent, placing it last in sales among actively marketed subcompact sedans. Ivan Drury, insights director at Edmunds, believes that the Mirage’s discontinuation indicates that even price-conscious buyers in the new car market are not interested in what is perceived as a low-quality vehicle. Despite its fuel efficiency and affordable price, the Mirage struggled to compete with used vehicles and faced tough competition from models like the Toyota Corolla. Mitsubishi plans to focus on crossovers and plans to bring two new models to the U.S. in the coming years, including the Xforce, a boxy compact utility vehicle.
Mitsubishi’s strategy moving forward is centered around doubling down on crossovers and expanding its lineup with stylish models to compete with rivals from Honda, Nissan, and Hyundai. The Outlander Sport subcompact crossover will be replaced by the Xforce, initially launching in Southeast Asia and potentially seeing an electric variant in the future. Mitsubishi aims to position the Xforce as a core model, growing from its current role in the Association of Southeast Asian Nations market to a global strategic vehicle. Analysts suggest that bringing a crossover to the market is a surefire way to attract attention, and Mitsubishi could introduce its first fully electric model, a compact crossover, to the U.S. in 2026. Additionally, there are possibilities of Mitsubishi bringing an electric pickup to the market, likely produced at Nissan Motor Co.’s U.S. factories to avoid import tariffs.
