Japan’s manufacturing heavyweights Honda and Nissan are set to begin merger talks as they battle mounting competition from Chinese EV manufacturers, reports the Nikkei.
As Japan’s second and third largest car makers after Toyota, both have seen market share erode, particularly in China, where EV sales hit 1.27 million units in November – nearly 70% of the global total.
In 2023, Honda and Nissan sold a combined 7.4 million vehicles worldwide but are grappling to keep pace as those rivals surge ahead. The two companies had already been strengthening ties: in March, they agreed to collaborate on EVs, and by August, they had expanded their technology partnership.
Now, the car makers are reportedly eyeing a single holding company, with a memorandum of understanding expected soon. Mitsubishi Motors – in which Nissan holds a 24% stake – may also be included, potentially creating one of the world’s largest alliances. Details, including ownership stakes in the new entity, remain to be clarified.
If the deal materialises, it would mark the industry’s biggest shake-up since Fiat Chrysler’s $52 billion merger with PSA in 2021, which formed Stellantis, home to Jeep, Peugeot, and other major brands.
Honda and Nissan declined to comment on the Nikkei report.
