Schedule a Call Back
Mitsubishi joins Honda-Nissan alliance amidst Tesla and China reorganisation
Industry News- Jul 30,24
Combined with Mitsubishi Motors' 810,000 units, the alliance's total sales reach 8.35 million vehicles.
Mitsubishi Motors is set to join the Honda-Nissan alliance, solidifying Japan's domestic market into two dominant groups: the Toyota Motor Group and the newly formed Honda-Nissan-Mitsubishi alliance. This new alliance collectively sells over 8 million vehicles globally, according to Nikkei Asia.
This strategic move comes at a critical juncture as Tesla and Chinese automakers heavily invest in electric vehicles (EVs), pressuring Japanese manufacturers to scale up and enhance their supply chains. The shift is expected to have widespread implications across various sectors in Japan.
While Honda and Nissan announced a comprehensive cooperation agreement in March, Mitsubishi Motors' role within this framework remained uncertain. With Nissan holding a 34.01% stake in Mitsubishi Motors, integrating Mitsubishi into the alliance aims to boost competitiveness in a challenging market. The three companies will now collaborate closely to strengthen their market position.
Negotiations have been on-going, with Mitsubishi Motors signing a nondisclosure agreement with Honda and Nissan. In the fiscal year ending March 2024, Honda and Nissan recorded global sales of 4.1 million and 3.44 million units, respectively. Combined with Mitsubishi Motors' 810,000 units, the alliance's total sales reach 8.35 million vehicles.
In contrast, Toyota, Japan's largest automaker has formed alliances with Daihatsu, Suzuki, Subaru, Mazda, and Hino Motors, achieving a combined sales volume of 16 million units. This places the Honda-Nissan-Mitsubishi alliance in direct competition with Toyota's extensive network.
The driving force behind this alliance is the urgent need to adapt to a rapidly changing auto industry, marked by the shift from internal combustion engines to EVs. Japanese automakers face significant challenges from emerging players in the EV market. In 2023, Nissan and Honda sold only 140,000 and 19,000 EVs worldwide, respectively, compared to Tesla's 1.8 million and BYD's 1.57 million units. In China, the world's largest car market, Honda and Nissan have struggled to compete against low-priced local EVs, prompting a re-evaluation of their market strategies.
(Source: Moneycontrol)
Related Stories
Auto & Auto Components
Shailesh Chandra Elected OICA President, Hildegard Müller as Vice President
Shailesh Chandra becomes first Indian OICA President; Hildegard Müller named Vice President, highlighting global leadership in automotive sustainability.
Read moreAuto & Auto Components
Toyota, Honda Step Up Investments to Make India Auto Hub
Japanese carmakers boost India presence as they cut dependence on China
Read moreAuto & Auto Components
Marelli Expands R&D Footprint in India with New Tech Center in Bangalore
Activities of the new centre will support key technology areas of Marelli such as electronics, automotive lighting, and both internal combustion and electric propulsion.
Read moreRelated Products
Automotive Oil Pump
AUTO COMPONENTS & ACCESSORIES
Kalpak Auto Pvt Ltd offers a wide range of
automotive oil pump.
Tata Motors unveils facilities for development of Hydrogen propulsion tech
AUTO COMPONENTS & ACCESSORIES
Tata Motors, India?s largest automobile company, unveiled two state-of-the-art & new-age R&D facilities for meeting its mission of offering sustainable mobility solutions. The unveilings constitute of Read more
Tata Motors plans petrol powertrain for Harrier and Safari SUVs
AUTO COMPONENTS & ACCESSORIES
Tata Motors is in the process of developing a new petrol powertrain for its premium sports utility vehicles, the Harrier and Safari, as confirmed by a senior company official. Currently, these models Read more
latest News
Subscribe to iNoW
For Industry News on WhatsApp, Give a Miss Call on: +91 84228 74016
