Japan’s Mitsubishi Motors is set to join an alliance with Honda Motor and Nissan Motor, creating an auto group with combined sales of over 8 million vehicles, according to the Nikkei business daily. Mitsubishi Motors, 34% owned by Nissan, will work with Honda and Nissan to finalize partnership details, aiming to standardize in-vehicle software.
Mitsubishi Motors declined to comment on the report, and officials at Nissan and Honda were not immediately available. Nissan has been losing market share in the U.S. and China, its two largest markets, and recently slashed its annual outlook due to heavy discounting in the U.S.
This collaboration could help Japan’s automakers reduce costs and compete with electric vehicle giants like China’s BYD and Tesla. In China, Japanese brands face stiff competition from domestic automakers offering low-priced, software-loaded vehicles. Nissan and Honda are also exploring a strategic partnership in EV component production to strengthen their position in the growing global market for battery-powered cars.