Increasing competitiveness in the electric vehicle era

According to Nikkei Asia, Mitsubishi has signed an agreement with Honda and Nissan, marking the beginning of detailed discussions on cooperation. This alliance is expected to create a giant auto manufacturing "machine" capable of competing with major rivals in the global market.

The Honda-Nissan-Mitsubishi alliance will jointly standardize vehicle control software to increase production efficiency and optimize product lines. In particular, the companies will also consider complementing each other's vehicle lines.

Currently, Honda does not produce plug-in hybrid electric vehicles (PHEVs) or pickup trucks in Japan, while Mitsubishi has strengths in these areas. This cooperation promises to bring many benefits to all three companies.

Honda and Nissan, Japan’s second and third largest automakers, will join forces with Mitsubishi to compete with other giants. Honda and Nissan announced a comprehensive cooperation agreement in March focused on developing electric vehicles. With Mitsubishi joining, the alliance’s total global sales are expected to reach 8.35 million vehicles in the fiscal year ending in March.

The formation of the Honda-Nissan-Mitsubishi alliance will split Japanese automakers into two major groups. The other, led by Toyota, is joining forces with Daihatsu, Suzuki, Subaru, Mazda and Hino Motors, bringing the group's total sales to 16 million vehicles.

The alliance is seen as a strategic solution for Japanese automakers to cut costs and strengthen their position in an increasingly competitive market. In particular, in the context of the ongoing transition from internal combustion engine vehicles to electric vehicles, Japanese automakers are showing signs of falling behind due to the rise of new "giants" such as Tesla and BYD.

In 2023, Nissan and Honda sold only 140,000 and 19,000 electric vehicles globally, respectively, while Tesla and BYD led the way with sales of 1.8 million and 1.57 million units, respectively. In China, the world's largest car market, Honda and Nissan are even cutting production due to difficulties facing low-cost domestic cars.