This joint holding company comprising Nissan, Honda and Mitsubishi could make it the third largest automaker in the world by 2026
We’re at a scenario that many auto enthusiasts would’ve called crazy a mere couple of years ago. Basically, three Japanese automotive titans, Nissan Motor Co Ltd, and Honda Motor Co Ltd have signed a Memorandum of Understanding (MoU) to explore a potential business integration, and Mitsubishi Motors could join that alliance as early as January 2025. This collaboration will be done under a joint holding company, which could become the third largest automaker on the planet.
Diving deeper into these merger talks, this collaboration looks to combine talent, technologies and resources to aid developments in carbon neutrality, electrification and vehicle intelligence. The timeline for it has already begun with a definite agreement regarding the joint holding company planned for a June 2025 execution. The full process is slated to be completed by August 2026.
Some of the key milestones to look forward to include standardized platforms for ICE, hybrid, and EV segments, optimised production processes for optimal production capacity and cut costs, an expanded range of financial services as well as a unified talent pool.
Do note that in this merger Nissan, Honda and Mitsubishi will continue to bear their own identities in a similar way to how Stellantis works. While this merger is a big step towards future mobility from the three carmakers, what does this mean for the Nissan-Renault-Mitsubishi alliance? As things stand, there’s no word on it, but the possibilities from the Nissan-Honda and Mitsubishi joint holding company are plenty in the mobility space. As for what it means for India, while Mitsubishi no longer sell cars in India, Nissan and Honda already have a foothold here which could translate to a number of shared models. Perhaps these combined efforts could also be the catalyst to encourage Mitsubishi to have another crack at the Indian automotive space.
