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Home ยป Honda and Nissan in Potential Merger Talks – Sources

Honda and Nissan in Potential Merger Talks – Sources

Sources suggest that this collaboration could enhance their ability to compete with major industry players like Toyota, as well as EV giants such as Tesla and BYD.

Destiny Eseaga by Destiny Eseaga
December 18, 2024
in Mobility
0
nissan honda merger
Nissan | Honda logos

Nissan | Honda logos

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Honda Cars and Nissan Motor are reportedly exploring a potential merger to strengthen their competitiveness against electric vehicle (EV) manufacturers, especially in China.

Sources suggest that this collaboration could enhance their ability to compete with major industry players like Toyota, as well as EV giants such as Tesla and BYD.

The merger is still in its early discussion stages, and one possibility is that a new holding company could be formed to manage the merged operations.

In March, the two Japanese automakers agreed to explore a strategic partnership for electric vehicles.

Both firms responded to the BBC with identical statements, which said: “As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other’s strengths.”

Many car brands are facing increasing competition as the industry transitions from petrol and diesel vehicles to electric ones, with production in China experiencing significant growth.

Honda and Nissan, Japan’s second and third largest car manufacturers behind Toyota, have been losing market share in China, which accounted for nearly 70% of global electric vehicle (EV) sales in November.

In 2023, the two brands combined for global sales of 7.4 million vehicles, but they are finding it difficult to compete with more affordable EV makers like BYD, which experienced a surge in quarterly revenues, surpassing Tesla’s for the first time in October.

Honda and Nissan have not denied the story, which was first reported by Japanese business newspaper The Nikkei, but said it was “not something that has been announced by either company”.

“If there are any updates, we will inform our stakeholders at the appropriate time.”

The two companies agreed in March to cooperate in their EV businesses, and in August deepened their ties, agreeing to work together on batteries and other technology.

In August, the two companies also announced an agreement with Mitsubishi to discuss intelligence and electrification.

“The thought that some of these smaller players can survive and thrive is getting more challenging, especially when you add on the complexity of all the additional Chinese manufacturers who have come in and are competing quite strongly,” said Edmunds analyst Jessica Caldwell.

“It’s just sort of necessary to survive, not only to survive, but also just to afford the future.”

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Tags: EVs mergerHondaHonda and Nissan mergerHonda Nissan mergerMergerNissan
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Destiny Eseaga

Destiny Eseaga

My name is Destiny Eseaga, a communication strategist, journalist, and researcher, deeply intrigued by the political economy of Nigeria and the broader world context. My passion lies in the world of finance, particularly, capital markets, investment banking, market intelligence, etc

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