Honda and Nissan: Driving Forces Behind a Possible Merger

Japanese carmakers Honda and Nissan are in discussions to strengthen their collaboration, which could include a merger. This comes in response to challenges from Tesla and Chinese competitors. A merger would create the world's third-largest auto group, surpassing Hyundai and Kia, with a combined 2023 sales figure of 7.35 million vehicles.

In a move that could reshape the global automotive landscape, Japanese automakers Honda and Nissan are reportedly negotiating to deepen their partnership. Sources indicate this could potentially lead to a merger, placing them ahead of Hyundai and Kia as the third-largest vehicle seller worldwide.

Honda's global vehicle sales reached 3.98 million last year, with Nissan close behind at 3.37 million. Combined, their sales totaled 7.35 million in 2023, surpassing the 7.31 million sold by South Korea's Hyundai and Kia, currently ranked third in the industry.

A merged entity would boast significant production capabilities and resources. Honda employs nearly 195,000 individuals, while Nissan has over 133,000 employees. With Honda's market capitalisation at $44 billion and Nissan's at $10 billion, the potential merger would be larger than Stellantis' formation in 2021.

(With inputs from agencies.)