Mitsubishi Motors is set to join the Honda-Nissan alliance, forming a powerful collaboration between Japan’s leading automakers. This partnership, combining Mitsubishi Motors, Honda Motor, and Nissan Motor, aims to create a formidable force in the global automotive industry, boasting combined sales exceeding 8 million vehicles annually, according to a report by the Nikkei newspaper.
Nissan, which holds a 34% stake in Mitsubishi Motors, is poised to finalise the details of this strategic partnership with Honda and Mitsubishi. The primary goal of this alliance is to standardise in-vehicle software that controls various car functions. This move is expected to enhance efficiency and reduce costs, allowing the companies to stay competitive in the rapidly evolving automotive market.
Despite the report, Mitsubishi Motors declined to comment, and a Nissan spokesperson mentioned that the news was not based on any official announcement from the companies. Honda representatives were unavailable for comment.
The alliance comes at a critical time for Nissan, Japan’s third-largest automaker, which has been struggling with declining market share in the United States and China—two regions that together accounted for half of its global sales in the past year. Last Thursday, Nissan revised its annual outlook downward after aggressive discounting in the U.S. significantly eroded its first-quarter profits.
Earlier this year, Nissan and Honda revealed their plans to explore a strategic partnership focusing on the production of electric vehicle components and the development of artificial intelligence in automotive software platforms. Mitsubishi Motors’ integration into this alliance builds on its existing collaboration with Nissan and Renault, which was restructured last year to create a more pragmatic and agile partnership.
Industry analysts believe that this expanded collaboration among Nissan, Honda, and Mitsubishi Motors could provide a crucial advantage in the electric vehicle (EV) market. Japanese automakers are facing stiff competition from Chinese companies like BYD and American giant Tesla, both of which dominate the EV sector.
In China, the world’s largest auto market, Japanese brands have historically performed well. However, they now face fierce competition from domestic automakers that have rapidly scaled up production and captured consumer interest with affordable, software-rich vehicles.
As the automotive landscape continues to shift towards electrification and advanced technologies, this new alliance between Mitsubishi Motors, Honda, and Nissan is poised to play a significant role in shaping the future of the industry.
Read more on Honda partners Nissan to compete against Tesla, BYD, other EV rivals