Japan’s Mitsubishi Motors is poised to enter into a strategic partnership with Honda Motor and Nissan Motor, forming a new alliance with a combined sales volume exceeding 8 million vehicles, according to a Nikkei report on Sunday.
Mitsubishi, which holds a 34% stake in Nissan, will collaborate with Honda and Nissan to finalize the details of their alliance. The focus will be on standardizing in-vehicle software to streamline car operations.
Mitsubishi Motors has not commented on the report, and Nissan’s spokesperson indicated that the details were not part of any official announcement. Honda representatives have yet to respond to requests for comment.
This development comes as Nissan, Japan’s third-largest automaker, faces declining market share in its key markets, the United States and China, which together contribute half of its global sales. Recently, Nissan reduced its annual forecast due to significant discounting in the U.S., which nearly eradicated its first-quarter profit.
Earlier this year, Nissan and Honda expressed interest in a strategic partnership to develop electric vehicle components and artificial intelligence for automotive software.
Mitsubishi Motors is already involved in a longstanding alliance with Nissan and France’s Renault. This trio agreed last year to restructure their partnership, aiming for a more streamlined and flexible collaboration.
The new alliance among Nissan, Honda, and Mitsubishi could help Japanese automakers reduce costs and enhance their competitive edge in the electric vehicle sector, where companies like China’s BYD and Tesla dominate.
Japanese automakers, once strong in China, now face fierce competition from local manufacturers offering affordable vehicles equipped with advanced software.