Mitsubishi Motors Corp. is currently deliberating on the possibility of becoming a part of the envisioned electric vehicle alliance between Honda Motor Co. and Nissan Motor Co., as per sources on July 28. This prospective move could lead to the establishment of a new three-company alliance in Japan, presenting a challenge to the alliance led by Toyota Motor Corp.
The collaboration between Mitsubishi and Nissan is not entirely new, as Nissan holds a significant 34-percent stake in Mitsubishi, and the two companies are already engaged in joint efforts to develop and manufacture "kei" vehicles. These kei vehicles are characterized by being small, low-powered, and subject to lower taxes, catering to the domestic market in Japan. By potentially joining forces with the Honda-Nissan alliance, Mitsubishi aims to enhance its EV manufacturing efficiency and potentially broaden its partnership with Honda in the domestic minivehicle sector.
This potential joining is particularly crucial for Mitsubishi as the company is in the process of restructuring its operations subsequent to its withdrawal from the Chinese market, viewing this alliance as a pivotal step towards its survival in the competitive automotive industry. Meanwhile, Honda and Nissan had previously revealed their strategic plans for a partnership in March, focusing on collaborating on core components and vehicle software development. The realm of electric vehicles has seen significant competition, with Tesla and China's BYD Co. leading the way; hence, various automakers globally are seeking partnerships and alliances to stay competitive in emerging technologies such as autonomous driving.