Mitsubishi partners with Honda and Nissan for electric vehicles

ABU DHABI: Mitsubishi will join the Nissan-Honda electric car partnership to better compete with Chinese rivals, as reported by Nikkei Asia.  Announced in March 2024, this collaboration now includes Mitsubishi, alongside Honda and Nissan. 

With Nissan holding a 34% stake in Mitsubishi, the expanded alliance boasts a combined annual sales of over 8 million vehicles. Mitsubishi will work with Nissan and Honda to finalize their strategic collaboration and focus on standardizing in-vehicle software.

Mitsubishi Motors has not commented on this matter, and Nissan has stated that the report is not based on any official announcement. Honda has also not responded to requests for comment. 

This development comes as Nissan, the third-largest automaker in Japan, faces challenges in China and the US, where declining market share impacts half of its global sales.

While not confirmed officially, it has been reported that Mitsubishi may share its smaller pickup models and plug-in hybrid tech with Honda. The initial plan of Honda-Nissan to standardize in-vehicle software may extend under license to Mitsubishi. In late 2023, Mitsubishi opted out of the Chinese market after significant losses, and despite pioneering with the Leaf, Nissan was only able to sell 140,000 EVs in 2023, leaving behind BYD and Tesla.

Honda along with GM had been developing an electric car worth $US30,000 (AED 110,680), but in late 2023 the project was abandoned after a fatal incident that involved the Cruise division of GM leading to a suspension. GM then abandoned the plan to build a new model and decided to make certain upgrades to the Chevrolet Bolt, reducing costs. Similarly, updated hardware will be used by Tesla for its $35,000(AED 128,450) electric car that is expected to be launched in North America in 2025.

To develop the electric car brand named Afeela, Honda will collaborate with Sony. Together they are planning to launch a compact car, SUV, and sedan in 2027. By 2030, Honda aims for around 40% of global sales to be fuel cell or hybrid, transitioning by 2040 to 100% electric.

Also read: Mitsubishi rolls out pilot program for smart charging solutions in Japan