Japan’s Mitsubishi Motors is set to form a significant alliance with Honda and Nissan, according to a report from Nikkei. This partnership among the three automakers, which have a combined sales volume exceeding 8 million vehicles, marks a major shift in the automotive industry.
Mitsubishi Motors, of which Nissan holds a 34% stake, will collaborate with Honda and Nissan to iron out the specifics of their strategic partnership. The primary focus of this alliance is to standardize the in-vehicle software that controls cars, enhancing compatibility and efficiency across their fleets.
While Mitsubishi Motors chose not to comment on the report, a spokesperson from Nissan clarified that the information was not based on any formal announcement by the companies. Representatives from Honda did not respond to requests for comments.
This strategic move comes at a time when Nissan, Japan’s third-largest automaker, is grappling with declining market share in its two largest markets, the United States and China. These markets combined accounted for half of Nissan’s global sales in the last financial year. Recently, Nissan slashed its annual forecast after steep discounts in the U.S. nearly wiped out its first-quarter profits.
Earlier this year, in March, Nissan and Honda revealed they were exploring a strategic partnership to jointly develop electric vehicle components and integrate artificial intelligence into automotive software platforms.
Mitsubishi Motors has long been part of an alliance with Nissan and France’s Renault, a partnership the three automakers agreed to restructure last year to create a more streamlined and agile collaboration.
The potential new collaboration among Nissan, Honda, and Mitsubishi Motors could enable Japan’s automakers to cut costs and strengthen their positions against formidable competitors in the electric vehicle market, such as China’s BYD and Tesla. In China, the world’s largest auto market, Japanese brands face fierce competition from domestic automakers who have rapidly increased production and captured consumer interest with affordable, tech-savvy vehicles.
This alliance could signal a new era for Japan’s automotive industry, fostering innovation and competitiveness in an increasingly challenging global market.