As the Japanese electric vehicle (EV) market sees growth, Mitsubishi Motors is reportedly set to enter discussions with Honda and Nissan, potentially creating a formidable alliance in the automotive landscape.

The partnership, initially announced between Honda and Nissan in March 2024, aims to focus on EVs and automotive software development. According to Nikkei Asia, Mitsubishi signed a nondisclosure agreement to start talks, the alliance could represent a combined global sales figure of 8.35 million vehicles, based on their fiscal year 2024 numbers.

The primary objective of the partnership is to standardize in-vehicle software systems. Honda and Nissan plan to jointly develop the basic software, with discussions underway to extend its use to Mitsubishi models. This collaboration aims to reduce costs and enhance competitiveness, particularly in electromobility.

Aside from software, the alliance is exploring cooperation in vehicle development. For instance, Honda, which currently does not manufacture plug-in vehicles or pick-ups in Japan, could benefit from Mitsubishi’s strong presence in these market sectors.

This strategic move arrives as Japanese automakers seek to catch up with EV market leaders such as BYD. According to data from the Japan Automobile Importers Association (JAIA), EV imports saw 17%, accounting for nearly 10% of all imported vehicles. Notably, BYD led this charge with its passenger car imports skyrocketing by 184% to 980 units compared to the same period in 2023.

The potential partnership would create two dominant automotive groups in Japan, with Toyota and its associated brands forming one group, and the Honda-Nissan-Mitsubishi alliance forming the other. Although Chinese automakers expanding operations into the Japanese EV market certainly makes this potential partnership more competitive to handle.

Read More: BYD Takes Nearly 3% Market Share In Japanese EV Market In First Half of 2024

With this strategic move reflecting the urgency felt by Japanese automakers to accelerate their transition to EVs, the progressing discussions will be keenly watched to how this alliance shapes the future of the Japanese automotive landscape and its global competitiveness in the EV market.

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