Japan’s Mitsubishi Motors is set to join an alliance between Honda Motor and Nissan Motor, creating a powerful partnership with combined sales of over 8 million vehicles, according to the Nikkei newspaper. While Mitsubishi Motors declined to comment on the report, a Nissan spokesperson stated that the companies hadn’t made any official announcements. Honda did not respond to a request for comment.
The move comes as Nissan, Japan’s third largest automaker, has faced challenges in its two biggest markets, the United States and China, which accounted for half of its global sales in the past year. Heavy discounting in the US led to a sharp decline in profit for Nissan’s first quarter, prompting the company to revise its annual outlook.
In an effort to regain market share and boost innovation, Nissan and Honda announced in March that they were considering a strategic partnership to collaborate on electric vehicle components and automotive software platforms powered by artificial intelligence. This potential alliance with Mitsubishi Motors would advance their goal of standardizing in-vehicle software.
Mitsubishi Motors, which is already part of an alliance with Nissan and France’s Renault, has been working to reshape its partnership with the two automakers. The aim is to create a more streamlined and agile alliance that can better compete in the rapidly evolving automotive industry.
By forming a separate collaboration with Nissan and Honda, Japanese automakers would have the opportunity to cut costs and strengthen their position in the electric vehicle market. Currently, companies like China’s BYD and Tesla dominate the industry, making competition fierce.
In China, the largest auto market worldwide, Japanese car brands used to be strong. However, they now face tough competition from domestic automakers that have rapidly increased production and won over consumers with affordable vehicles loaded with software.
Overall, the potential alliance between Mitsubishi Motors, Honda, and Nissan holds significant promise. By pooling their resources and expertise, these automakers can enhance their competitiveness in the electric vehicle market and stay at the forefront of automotive innovation.