Mitsubishi Motors is reportedly opting out of a high-profile merger between two of Japan’s automotive titans, Nissan and Honda, choosing instead to consolidate its stronghold in the burgeoning Southeast Asian markets. As reported by the Kyodo agency and the Yomiuri newspaper, Mitsubishi’s decision comes amidst concerns about potentially losing its operational autonomy within a proposed holding company structure.
The merger plan, unveiled by Nissan and Honda in late 2024, aims to forge the world’s third-largest automotive group by 2026. This strategic alliance seeks to establish a holding company where each brand would maintain operational independence, with shares set to trade publicly starting August 2026. This move is intended to bolster competition against Chinese and American automotive giants, who have been gaining a significant foothold in the global electric vehicle market.
Although Mitsubishi, which is 34% owned by Nissan, has not yet issued a definitive decision, it faces a deadline of late January to commit to the merger project. The company has expressed apprehension that joining such a complex partnership might curtail its decision-making authority, despite potential synergies with Nissan and Honda.
Currently, Mitsubishi seems to favor a growth strategy focused on reinforcing its dominance in key regions such as Indonesia and the Philippines. These areas are pivotal for Mitsubishi, given their rapidly expanding markets for low-cost vehicles and pickups—categories where Mitsubishi has a competitive edge.
Meanwhile, Nissan and Honda, Japan’s second and third-largest automakers respectively, are uniting their strengths to counter competitive pressures from Chinese and U.S. manufacturers. China, which outstripped other nations as the world’s leading automobile exporter in 2023, is advancing with electric vehicles that offer competitive pricing and cutting-edge technology, leaving Japanese manufacturers scrambling to adapt.