What Honda And Nissan Collaboration Mean For The Motor Industry

Possible collaboration between Honda and Nissan luming, Mitsubishi is also expected to join the group

Japanese based automakers Nissan and Honda are having talks of a possible merger to create the world’s third biggest car dealer.

During a news conference early this week, Toshihiro Mibe, Honda’s CEO confirmed that the two companies are indeed planning to work together for better competition in the world market.

They are eyeing new technologies in intelligent driving and electric cars and an integration would open space for an “edge that will not be possible under the current collaboration framework,” Mibe said.

They would form a holding company that would act as the parent company of both automakers and list it on the Tokyo Stock Exchange.

Discussions about the possible merger are yet to be finalised in June 2025 but the outcome of the merger is likely to be felt by 2030.

According to Mibe, the parent company has the potential of generating 30 trillion yen in revenue and 3 trillion in operating profit.

Nissan’s partner, Mitsubishi has also been given a chance to join the group and is expected to make final decisions by early 2025 before the possible merger.

Nissan and Honda Are Struggling

The automakers are not doing well in the global market compared to their Chinese counterparts. With the merger however, they may stand a fighting chance.

According to a separate statement, Honda sold about 3.43 million cars in the first 11 months of 2024 while Nissan sold about 3 million.

BYD, China’s biggest automaker sold about 3.7 million in the first period, a clear indication of how the Japanese automakers are struggling. Mitsubishi, which is also likely to be part of the merger, has in fact pulled out of the world’s biggest car market.

Last year, Chinese domestic car makers surpassed Japan as the largest global car exporter and is even expected to pull further next year.