Mitsubishi may not join the Nissan-Honda merger.

While there is no official statement yet, the Japanese carmaker stated earlier that it would decide by the end of January 2025.

While Mitsubishi has yet to officially confirm its stance, reports suggest the company is carefully evaluating its options. According to a source in the Japanese newspaper Yomiuri, Mitsubishi is reluctant to rush into the merger and is expected to announce its decision by the end of January 2025. Despite the uncertainty, Nissan and Honda appear set to finalise their union by August 2026, creating the world’s third-largest automotive group, trailing only Volkswagen Group and Toyota.

What’s at stake for Mitsubishi?

Nissan currently owns 34% of Mitsubishi Motors, making it the brand’s largest stakeholder. However, speculation is mounting that Nissan could reduce its stake by selling up to 149 million of its 506 million shares back to Mitsubishi. Such a move could disrupt the longstanding collaboration between the two companies, which has led to shared platforms, technology, and cost efficiencies.

Vehicles like the Mitsubishi Outlander and Nissan X-Trail, as well as the Nissan Navara and Mitsubishi Triton, are shining examples of this partnership’s success. If Mitsubishi exits the merger, it may face significant challenges in funding future developments as an independent automaker, particularly as it competes in an increasingly electrified and competitive market. The company’s financial results, set to be announced on February 3, 2025, may provide additional clarity on its future direction.

Read More: Nissan discusses potential alternatives.

The bigger picture

The merger between Nissan and Honda is being driven by the need to combat growing competition from Chinese automakers in the EV space, which have rapidly gained market share with affordable and advanced electric vehicles. If Mitsubishi chooses to sit out, it could find itself isolated and vulnerable, with fewer resources to innovate and amortise development costs across its relatively modest global sales volume—just 789,000 vehicles in 2023.

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