Mitsubishi Motors has decided not to participate in a proposed merger between Honda Motor and Nissan Motor.

Instead, the company will focus on increasing collaboration with both firms in technology development, particularly in software, EVs, and other advanced technologies.

Honda and Nissan announced plans in December to establish a holding company for their integrated operations.

Mitsubishi, Nissan’s top shareholder, had been considering its position on the merger until the end of January.

This approach reflects Mitsubishi’s preference for partnerships rather than direct integration, especially amid rising competition from US and Chinese automakers.