The Mitsubishi Montero, known as the Pajero in many markets, was a trailblazer in the SUV segment. Launched in 1982, it quickly established itself as a capable off-roader with a reputation for reliability and rugged performance. Despite its global acclaim and numerous Dakar Rally victories, the Montero/Pajero was discontinued in 2021, leaving fans wondering why this iconic model was phased out. Below, we explore the key reasons behind its discontinuation.
Declining Demand for Large SUVs
In recent years, the global automotive market has shifted towards smaller, more fuel-efficient crossovers. Large, body-on-frame SUVs like the Montero/Pajero have seen declining sales due to their higher fuel consumption and bulkier designs, which are less appealing to urban buyers. Many consumers now favour vehicles that offer a mix of off-road capability and everyday practicality, such as unibody SUVs and crossovers.
Stricter Emission Regulations
Governments worldwide are implementing stricter emission standards to combat climate change. The Montero/Pajero, with its older engine technology and heavier frame, struggled to meet these evolving requirements without significant redesigns. Developing a more environmentally friendly version of the Montero/Pajero would have required substantial investment, which Mitsubishi deemed unviable given the vehicle’s declining sales.
High Development and Manufacturing Costs
Large SUVs like the Montero/Pajero are costly to design and produce, particularly when compared to crossovers. With sales numbers dwindling, Mitsubishi faced diminishing returns on the model. Investing in next-generation versions or adapting the vehicle for stricter emissions and safety standards would have further strained resources, leading Mitsubishi to prioritise its more popular and profitable models.
Mitsubishi’s Strategic Shift
Mitsubishi’s broader corporate strategy has also played a role. In recent years, the company has focused on smaller, fuel-efficient vehicles and electrification to stay competitive in an evolving market. This pivot left little room for large, traditional SUVs like the Montero/Pajero. Additionally, Mitsubishi’s involvement in the Renault-Nissan-Mitsubishi Alliance has influenced its focus on shared platforms and technologies, which favour crossovers and EVs over large, standalone SUV models.
Recent Developments and Future Possibilities
The Montero nameplate was recently patented in the United States, fuelling speculation about its return. Rumours of a new Pajero as a halo model for the brand have been circulating for years, especially following the nameplate’s retirement after Mitsubishi’s Sakahogi plant closed in March 2021.
The 2026 Pajero, for markets such as Australia, has already been spotted in testing, reportedly based on the Mitsubishi Triton. Since the Pajero and Montero have traditionally been the same vehicle with different names, it’s likely this will continue. However, another possibility exists due to the recent merger between Honda, Nissan, and Mitsubishi.
Under this merger, the Pajero nameplate might be applied to a 4-cylinder mid-size SUV for markets like Australia. Meanwhile, the Montero in the US could be based on the Nissan Y63 Patrol, which recently transitioned from a 298kW/560Nm 5.6-litre naturally aspirated petrol V8 to a 3.5-litre twin-turbo petrol V6 derived from the GT-R supercar. Despite the smaller displacement, the sixth-generation Patrol offers greater performance, boasting 317kW/700Nm alongside a new nine-speed automatic gearbox, up from the previous seven-speed unit.
