According to the Japanese business paper Nikkei, Mitsubishi is set to join the alliance between Nissan and Honda, which was announced in March. This cooperation aims to jointly develop software to reduce costs and enhance competitiveness, especially in the field of electromobility.
Nissan currently holds a 34.01% stake in Mitsubishi. With the NDA now signed, Mitsubishi Motors is negotiating with Honda and Nissan. Honda and Nissan are Japan's second and third largest automakers, respectively, with 2024 fiscal global sales figures of 4.1 million and 3.44 million units. Adding Mitsubishi Motors' 810,000 units, the group's collective sales would reach 8.35 million vehicles.
The partnership's first goal is to standardize the in-vehicle software that controls the vehicle. Nissan and Honda will jointly develop the basic software and consider its application in Mitsubishi Motors vehicles.
Cooperation in other vehicle sectors is also under consideration. For instance, Honda does not manufacture plug-in vehicles or pickups in Japan, areas where Mitsubishi has a strong market presence.
The Nikkei report highlights a reason for the cooperation: “In 2023, Nissan and Honda sold only 140,000 and 19,000 EVs worldwide, respectively, while Tesla and BYD were far ahead with 1.8 million and 1.57 million units, respectively.” Additionally, both companies faced challenges in China, where local manufacturers offer more competitive pricing.
A previous major international partnership between these partners, along with Renault, did not meet initial expectations. However, this new alliance aims to leverage each company's strengths to better compete in the evolving automotive market.
Source: Nikkei
