China - The company has started making its 4B4 and 4J1 engines at a new plant in Changsha, Hunan. These were previously imported from Japan before being dropped into the Mitsubishi Eclipse Cross SUV and the Outlander SUV.
The engine plant has an annual production capacity of 200,000 units, and according to the OEM, it will help it to "enhance cost competitiveness."
As well as starting local engine production, GAC Mitsubishi said it was relocating its research and development centre in Changsha in order to increase its size. The new site will include a vehicle testing course, and will help strengthen the company's "technological development functions in order to meet the local market needs for China."
News of local engine production comes a year after GAC Mitsubishi revealed a three-year plan, in which it said it would look to double sale outlets in China as well as expanding its SUV portfolio. The company recently started making the Eupheme EV - an electric SUV - at its Changsha plant.
Mitsubishi isn't the only Japanese carmaker currently targeting China. Both Nissan and Toyota have expanded their production facilities in the country as they hope to increase market share.