Mitsubishi will replace its ASX with a successor based on the Renault Captur small SUV.
The new ASX will be one of two models based on Renault bestsellers that will help to reinforce the Japanese automaker's presence in Europe, Mitsubishi said.
The ASX will be built by Renault at its Valladolid plant in Spain and will be offered with hybrid and plug-in hybrid drivetrains when it goes on sale in spring 2023.
The second Renault-based model will follow at the end of 2023. Mitsubishi CEO Takao Kato said during a presentation on Thursday by top Renault, Nissan and Mitsubishi executives on the alliance's plan to invest 23 billion euros ($26 billion) into electric vehicles over the next five years.
Kato did not give any more details of the second car.
Mitsubishi Europe CEO Frank Krol said the new ASX will build on the automaker's heritage as the first manufacturer to offer a plug-in hybrid SUV with its Outlander.
"The SUV format continues to grow in popularity in Europe, and with Plug-in Hybrids becoming mainstream, we are set to build on that heritage with the next generation ASX," Krol said in a statement.
Mitsubishi said in 2020 it would leave the European market after struggling to turn a profit in the region, but the automaker reversed the decision in 2021 after Renault agreed to build two new Mitsubishi models for Europe at its plants.
Mitsubishi, however, has reduced the number of markets it operates. For example, the two new models will not be sold in the UK, the company said last year.
In its remaining European markets, the two new models will be sold alongside the existing Eclipse Cross plug-in hybrid compact SUV.
Mitsubishi's vehicle sales fell 32 percent to 69,201 cars last year in Europe, figures from JATO Dynamics show.
The Mirage/Space Star small car remains the brand's best-seller, accounting for just under half the automaker's sales.
Mitsubishi is also considering whether to offer an electric car in Europe. "In order to survive in Europe, we definitely need an EV platform, so an EV will be very strong possibility for us," Kato said in the presentation.
During the same alliance presentation Nissan said it would launch a full-electric replacement for the Micra small car based on a new CMF-BEV platform shared with the upcoming Renault 5. The first car built on the new platform will go on sale in 2024. The alliance did not say whether this would be the Micra or a Renault model.