02:43 PM EDT, 07/29/2024 (MT Newswires) -- (Updates with Honda Motor ( HMC ) response in the fifth paragraph.)

Mitsubishi Motors is set to join an alliance between Nissan Motors and Honda Motor ( HMC ) and consolidate the domestic market into two major groups: Toyota Motor's ( TM ) group and the Honda-Nissan-Mitsubishi alliance, Nikkei reported Sunday.

The collaboration will focus on standardizing in-vehicle software, with Nissan and Honda ( HMC ) developing the basic software to be potentially used in Mitsubishi vehicles, the report said.

The move aims to enhance the competitiveness of next-generation vehicles while managing development costs, Nikkei reported.

Additionally, the companies will explore supporting each other's vehicle lineups, including potential original equipment manufacturing supply from Mitsubishi for plug-in hybrid vehicles and pickup trucks, and future collaboration in mini vehicles, according to the report.

"Honda ( HMC ) is continuing discussions with Nissan, but we have not made an announcement about any discussions with Mitsubishi," a Honda Motor ( HMC ) spokesperson told MT Newswires.

Mitsubishi and Nissan did not immediately respond to requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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