Honda And Nissan To Begin Merger Talks

Japanese automakers Honda Motor and Nissan Motor are set to begin discussions on a potential merger, aiming to bolster their competitiveness against Tesla and other electric vehicle (EV) makers, Agence France-Presse (AFP) reported, citing Nikkei.

Analysts see the potential merger as a response to China's growing dominance in electric vehicle exports and its status as the world’s largest vehicle exporter since 2023, surpassing Japan. I Photo: Kyodo

The proposed plan involves creating a single holding company for both firms. The automakers are expected to sign a memorandum of understanding (MOU) soon. Additionally, Mitsubishi Motors, of which Nissan is the top shareholder, may be integrated into the holding company, forming one of the world’s largest automotive groups.

Both Honda and Nissan issued nearly identical statements, clarifying that the reported details had not been announced by either company and that they were "exploring various possibilities for future collaboration, leveraging each other’s strengths."

This development follows a March agreement between Honda and Nissan to deepen their partnership on EVs as they attempt to catch up with Chinese competitors like BYD, which has surged ahead in the EV market.

Analysts see the potential merger as a response to China's growing dominance in electric vehicle exports and its status as the world’s largest vehicle exporter since 2023, surpassing Japan.