Japanese automakers Nissan Motor and Honda Motor may merge to better compete in the evolving global auto industry, according to reports from the Nikkei newspaper. The companies are reportedly considering forming a holding company and could sign a memorandum of understanding soon. Mitsubishi Motors, in which Nissan holds a 24% stake, may also join the holding company.
If finalized, the merger would create a combined enterprise with annual sales exceeding 8 million vehicles, positioning it among the world’s largest automakers. However, it would still trail behind Toyota (11.2 million cars in 2023) and Volkswagen (9.2 million).
While neither company has confirmed the report, they acknowledge the need to explore potential collaborations. In March 2023, Honda and Nissan announced a strategic partnership focused on shared components and software, hinting at deeper cooperation.
This potential merger follows calls from industry experts for automakers to join forces to share costs and compete with expanding Chinese companies and Tesla’s dominance in the electric vehicle (EV) market.
Honda has committed to investing $65 billion in EV development by 2030, aiming for 100% EV sales by 2040. Nissan, meanwhile, plans to launch 16 new electrified models within three years.
Although hybrids remain popular in Japan, the global shift towards electric cars has pressured Japanese automakers to innovate. A merger could accelerate Honda and Nissan’s transition into the EV space, ensuring they stay competitive in the global market.
Main Keyword: Nissan Honda merger
Description: Nissan and Honda may merge under a holding company, potentially creating one of the world’s largest automakers to compete in the growing EV market.
