Photo Credit:Associated Press.
Honda Motor and Nissan Motor are reportedly in early talks for a potential merger, aiming to strengthen their positions in the evolving global automotive landscape. According to Nikkei, the automakers plan to operate under a holding company and could eventually include Mitsubishi Motors, of which Nissan holds a 24% stake .
If finalized, this partnership would generate over 8 million vehicle sales annually, propelling the group to the top tier of global automakers.
In 2023, Honda and Nissan collectively sold 7.4 million vehicles, trailing behind Toyota's 11.2 million and Volkswagen's 9.2 million. Analysts view the merger as a response to growing challenges posed by Chinese automakers, who dominated 70% of global electric vehicle (EV) sales in November. Tesla, the U.S. EV leader, also continues to pressure traditional automakers with its expanding market share.
“The thought that smaller players can survive is getting more challenging,” commented Jessica Caldwell, an analyst at Edmunds. “A merger like this isn’t just about survival; it’s about affording the future.”
The potential tie-up follows a strategic partnership agreement between Honda and Nissan in March 2024 to collaborate on EV components and software. In August, the firms extended their cooperation to include batteries and other technologies. “We are exploring possibilities for future collaboration, leveraging each other’s strengths,” both companies stated in a joint response to the BBC.
Shares in Nissan surged over 11% in Tokyo trading following reports of the discussions. Meanwhile, Honda’s stock saw a modest 1% uptick, and Mitsubishi Motors’ shares climbed by 13%. Industry experts attribute the stock movements to investor optimism about cost-sharing and competitiveness.
Jesper Koll from Monex Group, however, voiced skepticism. “Is this just rearranging the deck chairs on the Titanic? Neither company currently offers standout technologies or products that global consumers are demanding,” he said.
The merger, if pursued, would mark the largest automotive industry consolidation since Fiat Chrysler and PSA Groupe formed Stellantis in 2021. The combined Honda-Nissan-Mitsubishi entity would still face intense competition from China’s BYD, which surpassed Tesla’s revenue for the first time in October.
Makoto Uchida, Nissan CEO, and Toshihiro Mibe, Honda CEO, have yet to confirm the details of the merger talks. “If there are any updates, we will inform stakeholders at an appropriate time,” they said.
If finalized, this partnership would generate over 8 million vehicle sales annually, propelling the group to the top tier of global automakers.
In 2023, Honda and Nissan collectively sold 7.4 million vehicles, trailing behind Toyota's 11.2 million and Volkswagen's 9.2 million. Analysts view the merger as a response to growing challenges posed by Chinese automakers, who dominated 70% of global electric vehicle (EV) sales in November. Tesla, the U.S. EV leader, also continues to pressure traditional automakers with its expanding market share.
“The thought that smaller players can survive is getting more challenging,” commented Jessica Caldwell, an analyst at Edmunds. “A merger like this isn’t just about survival; it’s about affording the future.”
The potential tie-up follows a strategic partnership agreement between Honda and Nissan in March 2024 to collaborate on EV components and software. In August, the firms extended their cooperation to include batteries and other technologies. “We are exploring possibilities for future collaboration, leveraging each other’s strengths,” both companies stated in a joint response to the BBC.
Shares in Nissan surged over 11% in Tokyo trading following reports of the discussions. Meanwhile, Honda’s stock saw a modest 1% uptick, and Mitsubishi Motors’ shares climbed by 13%. Industry experts attribute the stock movements to investor optimism about cost-sharing and competitiveness.
Jesper Koll from Monex Group, however, voiced skepticism. “Is this just rearranging the deck chairs on the Titanic? Neither company currently offers standout technologies or products that global consumers are demanding,” he said.
The merger, if pursued, would mark the largest automotive industry consolidation since Fiat Chrysler and PSA Groupe formed Stellantis in 2021. The combined Honda-Nissan-Mitsubishi entity would still face intense competition from China’s BYD, which surpassed Tesla’s revenue for the first time in October.
Makoto Uchida, Nissan CEO, and Toshihiro Mibe, Honda CEO, have yet to confirm the details of the merger talks. “If there are any updates, we will inform stakeholders at an appropriate time,” they said.
