Mitsubishi has said it is has found evidence that employees have manipulated emissions test data, reports The Independent.
More than 150,000 Mitsubishi light passenger cars and 468,000 vehicles produced for Nissan are involved in inaccurate testing, according to AP.
Shares in Mitsubishi Motors were down up to 16 per cent on Wednesday morning after the company said that an unspecified number of cars had failed fuel tests.
“One of our models was found to have failed part of a fuel economy test,” a spokesman said.
Mitsubishi is Japan’s largest car maker. It sold more than one million vehicles last year but has less than 1 per cent of the UK market.
This is the first time a Japanese car maker has been implicated in the emissions testing scandal since it engulfed Volkswagen last year.
Volkswagen is in the process of recalling millions of cars and has set aside £4.8 billion to cover costs. In October, Volkswagen posted its first quarterly loss for 15 years of €2.5 billion.