Mitsubishi Motors is reportedly set to join the Honda-Nissan alliance, which was formed in March when both automakers announced a comprehensive cooperation agreement to explore joint development in the fields of vehicle electrification and intelligence.
According to a Nikkei report, Mitsubishi Motors, of which Nissan has a 34.01% stake in, has signed a nondisclosure agreement with Honda and Nissan and has begun discussions to join the framework of the alliance.
The three companies intend to standardise the software that will be used in their vehicles, with Honda and Nissan expected to jointly develop the basic software and look into incorporating its use in Mitsubishi vehicles.
While new in-vehicle software that can be updated will ensure the competitiveness and aid the longevity of next-generation vehicles, it also costs an enormous amount of money to develop. The tie-up is looking to introduce this high-performance technology while keeping costs down, helping to redirect management resources to other electrification-related fields.
The report adds that the companies will also consider complementing each other’s vehicle lineups. Honda doesn’t manufacture plug-in hybrid vehicles (PHEV) or pick-up trucks in Japan, and so, Mitsubishi – which has strength in this field – will discuss providing OEM supply. In the future, the two companies will also seek collaboration in the area of mini vehicles, or kei cars.
The strategic partnership will effectively consolidate the domestic market into two forces, the other being that of the Toyota Motor Group. Honda and Nissan are the second and third largest automakers in Japan, with global sales of 4.1 million and 3.44 million units respectively in the fiscal year ending March 2024. Mitsubishi’s 810,000 units will take this total to 8.35 million vehicles.
Meanwhile, Toyota has formed a tie-up with Daihatsu, Suzuki, Subaru, Mazda and Hino Motors, bringing the five automakers’ combined sales volume to 16 million units.
The alliances highlight a pressing need to adapt to the major changes taking place in the auto industry, which is said to occur only once every 100 years. The ever-growing shift from internal combustion engine-powered vehicles to electric ones has seen Japanese automakers lagging behind on the new battleground.
In 2023, Nissan and Honda sold only 140,000 and 19,000 EVs worldwide, respectively, paling in comparisnn to the likes of Tesla (1.8 million units) and BYD (1.57 million). Nowhere is this more evident than in China, the world’s largest car market, where both Honda and Nissan have been forced to change their expansion path, struggling against the multitude of low-priced EVs flooding the local market.
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