Following media rumors that the Japanese carmaker is in talks to join Nissan and Honda's proposed strategic cooperation, Mitsubishi Motors' shares rose on Monday.

Nissan and Honda said in March that they were thinking about collaborating on artificial intelligence in automotive software platforms and electric car components, even though they do not plan to raise money together. Representatives from the three automakers declined to comment. The stock of Mitsubishi Motors rose 6.3% in early afternoon trade. Nissan's stock rose by 2.8%, while Honda's increased by 2.6%.

The proposed automotive alliance news highlights the two camps that the Japanese auto industry is splitting into and the mounting pressure on manufacturers to cooperate in order to reduce the enormous expenses associated with creating new technology.

Toyota Motor collaborates with its allies, Suzuki, Subaru, and Mazda, in the opposing camp. As a longstanding partner of Nissan and Renault, Mitsubishi Motors is owned by Nissan to the tune of 34%.

Given Nissan's ownership position in the business, it would make sense for it to take part in the upcoming alliance with Honda, Goldman Sachs analysts stated in a client note. They stated in their letter that they thought the software component of the rumored partnership was the most significant and that all three businesses would gain from seeking economies of scale.

Last year, Nissan, Renault, and Mitsubishi Motors decided to reorganize their alliance with the goal of creating a smaller, more practical, and more flexible collaboration. Included in that is an investment of up to 600 million euros ($651 million) by Nissan and 200 million euros by Mitsubishi Motors in Renault's electric vehicle company, Ampere.