Honda and Nissan's Potential Merger to Form Auto Giant

Honda and Nissan are expected to announce a merger exploration, forming a joint holding company by August 2026. This move aims to create the world's third-largest auto group. The merger will also involve Mitsubishi Motors, heightening competition with Tesla and Chinese carmakers in the global market.

Honda and Nissan are in discussions to form a joint holding company, paving the way for a potential merger that could rank them as the world’s third-largest automotive group. The agreement, expected by June 2025, would enhance their competitive edge against Tesla and emerging Chinese manufacturers.

The merger plan includes Nissan’s ally Mitsubishi Motors, and a press conference will follow Honda and Nissan board meetings. With Honda holding a market capitalization exceeding $40 billion and Nissan at $10 billion, the partnership seeks to capitalize on complementary strengths in electrification and software development.

This merger represents the most significant shift in the automotive industry since the 2021 Fiat Chrysler and PSA merger. As Honda and Nissan's sales wane in China, combining forces aims to reclaim market share. Meanwhile, Renault, Nissan's largest shareholder, remains cautiously supportive of examining the implications.

(With inputs from agencies.)