Chasing China And Tesla, Mitsubishi Motors Reportedly Joins The Honda And Nissan Alliance

Mitsubishi Triton. (Doc. Mitsubishi Motors)

JAKARTA - In the world's largest automotive market, China, Japanese brands previously had a strong position. However, now Chinese local car manufacturers have grown rapidly by increasing production and attracting consumers through affordable vehicles equipped with advanced software. In addition, Tesla from the United States (US) is also liked by Chinese consumers.

Reported by Nikkei Asia, quoted July 29, the massive investment of Chinese manufacturers in electric cars and also Tesla made Japanese manufacturers unable to compete both in terms of numbers and supply chains. So it is the big shift in the Japanese automotive world that can make them catch up.

Most recently, the news of Mitsubishi Motors joining the alliance that has been established between Honda Motor and Nissan Motor is quite surprising. The presence of Mitsubishi will make this alliance even stronger, with total combined sales reaching more than 8 million vehicles per year.

Meanwhile, reported by Reuters, it was stated that Mitsubishi Motors, whose 34 percent stake is owned by Nissan, will work closely with Honda and Nissan to finalize details of their strategic partnerships. One of the main focuses of this collaboration is the standardization of vehicle software that controls car operations.

Although the report was enthusiastically welcomed, Mitsubishi Motors declined to comment. Meanwhile, a Nissan spokesperson only stated that the report was not based on the company's official announcement. A Honda spokesperson has yet to provide an official response. This step was taken amid Nissan's condition, Japan's third-largest automaker, which is experiencing a decline in market share in its two largest markets, namely the US and China. Usually, the two countries account for nearly half of Nissan's global sales in the fiscal year ending last March.

On Thursday, Nissan was forced to lower its annual financial target after a massive US discount program came close to eliminating their profits in the first quarter.

Earlier, in March, Nissan and Honda had stated that they were considering a strategic partnership to collaborate in the production of electric vehicle components and artificial intelligence (AI) for automotive software platforms.Mitsubishi Motors itself has joined the long-term alliance with Nissan and Renault from France. The three automakers agreed to restructure their alliance last year, with the aim of creating a slimmer and pragmatic partnership.