Mitsubishi Motors is planning to pull out of car production in China, sources familiar with the matter said Thursday, as the Japanese automaker’s sales slump amid a rapid shift to electric vehicles in the country.

Mitsubishi Motors, which halted output in China in March, plans to focus its resources on the Southeast Asian market, the sources said.

The company is making final arrangements with its Chinese venture partner Guangzhou Automobile Group to cease manufacturing, the Nikkei newspaper has reported.