Back in March, Japanese automakers Honda and Nissan announced a strategic partnership in an effort to be more competitive in the market. Now, Mitsubishi Motors, in which Nissan has a 34% stake, is also joining the alliance, according to a recent report by the financial newspaper Nikkei.
Nikkei reports that the three automotive companies “intend to standardize the in-vehicle software that controls the vehicle.” Previously, Honda and Nissan agreed to work together on the production of electric vehicle (EV) components while also developing artificial intelligence-powered software platforms for cars.
The framework of the alliance is yet to be finalized, but Mitsubishi, Honda, and Nissan are expected to collaborate in various other departments, including complementing each other’s car lineups.
The partnership comes at a time when all three automakers are struggling to remain competitive in the EV market that has been dominated by Tesla and Chinese EV companies. This has particularly been the case in China, where Mitsubishi, Honda, and Nissan had a strong customer base but are now losing footing amid pressure from domestic brands that offer cheaper vehicles.
The group will now be positioned as the third biggest automaker in Japan, with more than 8.35 million vehicles sold globally on an annual basis. Toyota, which also recently struck strategic partnerships with rivals like Suzuki and Mazda, remains the biggest seller in the country.