Nissan has announced it is to buy up to $1 billion in car makers in 2020.
The announcement was made on the sidelines of the Asia Pacific auto show, where the company revealed it had entered into a memorandum of understanding (MoU) with Hyundai Motor and Renault to acquire an undisclosed amount of shares in its domestic car manufacturing operations in Asia.
The company will then seek to buy shares in the manufacturers’ subsidiaries in an attempt to drive up share prices, Nissan said.
The MoU covers shares held by Nissan in the three Japanese carmaker subsidiaries: the SCCA, SCC, and the Dentsu Automotive Group.
“This MoU is an opportunity for Nissan to accelerate its investment in the global car industry and bring its high-quality products to market,” Nissan said in a statement.
“We have a strong future as a global carmaker, and our new strategic alliances will allow us to bring our vision and commitment to the world’s cars to the next level.”
Nissan has been trying to grow its automotive business in Japan for more than two decades.
Its main competitor in the country, Toyota, has been in the process of buying up its domestic automakers since last year.
The Japanese company has been able to secure a strong foothold in Japan’s lucrative consumer market thanks to a combination of low taxes and competitive pricing.
The deal will also benefit the company’s other domestic carmakers, as it will give Nissan access to their production facilities and a global supply chain.
Nissan said it planned to invest around $1.6bn in the Japanese car sector by 2020.
It has previously indicated that it would consider buying up to a third of its current operations in Japan, as well as some of its subsidiaries in the Asian continent.
The country accounts for roughly 40% of Nissan’s sales, making it a strong target for the company.