Japan's Nissan Motor and Mitsubishi Motors are set to form a joint venture by the end of this financial year to advance services involving electric vehicles (EVs) and autonomous cars, according to Yomiuri Shimbun.

The venture aims to provide robotaxi services featuring Level 4 autonomous driving technology and offer at-home EV battery storage, among other initiatives.

As part of this collaboration, Nissan is developing the robotaxis, while Mitsubishi is working on a system that utilises AI to determine optimal routes for these autonomous vehicles. Initial robotaxi operations are expected to launch in Yokohama and Namie, Japan.

The joint venture will also focus on connecting EVs to homes and power grids, enabling users to tap into stored vehicle electricity at home or sell it to power companies. Additionally, the collection and recycling of used EV batteries for secondary use will be explored.

The venture will be funded equally by both companies.

Earlier this year, reports indicated that Mitsubishi Motors was planning to join an alliance between Honda and Nissan, a collaboration that would unite automakers with a combined sales volume exceeding 8 million vehicles.

Nissan, currently Japan's third-largest carmaker, has been experiencing a decline in market share in the US and China. Mitsubishi Motors, too, has faced setbacks, reporting a drop in sales and profit during its first half of FY 2024. The company attributed the decline to increased vehicle supply, heightened competition, and a delayed macroeconomic recovery in Thailand and Indonesia. Net sales decreased by 2% year-on-year to CNY 1307.4 billion (US$ 184.1 billion), while operating profit fell by 13% to CNY 90.7 billion.