Nissan and Honda have announced a partnership to collaborate on next-generation electric vehicles (EVs) and software-defined vehicle (SDV) technology. Mitsubishi is also confirmed to join this strategic alliance on separate focuses, creating a formidable trio in the global EV market.

In details of this partnership between Nissan and Honda, it aims to accelerate the development of core EV components including batteries, automotive software platforms, and other complementary technologies. This partnership is seen as a direct response to the challenges faced by Japanese automakers in the highly competitive Chinese EV market and the global shift towards electric and autonomous vehicles.

Nissan CEO Makoto Uchida expressed the importance of this partnership stating, “Through collaboration among the three companies, we expect the partnership to evolve into something that creates greater value, and to deliver unique products and services from each company that meet the diverse needs of customers.”

In addition, Honda CEO Toshihiro Mibe described the auto industry as being in a “once in a century” transformation, highlighting the need for rapid problem-solving through partnerships. Also, Mitsubishi CEO Takao Kato echoed this sentiment, noting that collaboration is “essential in today’s automotive industry.”

The partnership will focus on several key areas:

As for Mitsubishi, it was previously reported that the company is set to join the Honda-Nissan alliance to focus on EVs and automotive software development. Currently, it is confirmed by the company itself that all three companies have signed a memorandum of understanding (MoU) to discuss a framework for further intelligence and EVs, according to Mitsubishi.

Read More: Mitsubishi Reportedly Set To Enter Talks To Join In Honda-Nissan EV Alliance

Japanese automakers have been facing declining sales in the largest market of China, with Honda and Nissan seeing drops of 40% and 27% respectively in June alone according to Bloomberg. The partnership is expected to help the companies better compete with rising Chinese EV automakers like BYD, which have been gaining strong market share.

While there are currently no talks of a capital alliance between Honda and Nissan, Honda President Toshihiro Mibe did not rule out the possibility in the future. Moreover, the partnership is set to start with a year-long basic research phase, after which the companies will consider the potential for mass production development.

This partnership alliance positions the trio against Toyota, Japan’s largest automaker, which has built its own consortium through stakes in Subaru, Suzuki, and Mazda. It also marks a major shift in Nissan’s strategic partnerships following the overhaul of its alliance with Renault SA in early 2023.

As the global automotive landscape races towards electrification and autonomous driving, this partnership among Nissan, Honda, and Mitsubishi represents a major step for Japanese automakers in their efforts to remain competitive on the world stage. The success of this alliance could potentially reshape the Japanese automotive landscape and beyond.

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