Honda and Nissan: A Potential Historic Merger Amid Rising EV Competition

Honda and Nissan are considering a merger by 2026 to tackle the competition from Chinese EV makers and Tesla. The potential tie-up would form the world's third-largest auto group, joining forces with Mitsubishi Motors to strengthen their market position and drive innovation in electrification and autonomous driving.

In a landmark move for Japan's auto industry, Honda and Nissan announced plans to merge by 2026. This potential tie-up underscores the pressure legacy carmakers face from rising Chinese electric vehicle (EV) manufacturers.

The merger would create the world's third-largest automotive group, potentially including Mitsubishi Motors. The companies aim to boost market presence in the face of competition from Tesla and Chinese rivals like BYD.

The merger plans come as both companies navigate challenging markets. Honda and Nissan struggle in China, the world's largest automotive market, amid fierce competition from domestic EV makers. The collaboration aims to enhance resources and scale in the evolving global auto landscape.

(With inputs from agencies.)