Honda and Nissan Announce Merger to Strengthen Position Against EV Rivals

Honda and Nissan have unveiled plans to merge under a single holding company by 2026, marking a historic move to tackle the growing competition from Chinese EV manufacturers and global leaders like Tesla. 

The merger aims to create the world’s third-largest automaker by vehicle sales, combining resources to enhance innovation, scale, and competitiveness in an evolving industry.

Strategic Vision for a United Future

The collaboration seeks to address intensifying competition, with Honda CEO Toshihiro Mibe emphasizing the need for scale and innovation to remain relevant by 2030. Nissan CEO Makoto Uchida echoed this sentiment, highlighting the merger as a strategy to combine strengths and deliver superior value to customers.

Operational Framework and Milestones

The new holding company, set to launch by August 2026, will unify research and development, standardize vehicle platforms, and optimize supply chains. A steering committee will finalize the framework by mid-2025, with shareholders voting in April 2026. If approved, the merged entity aims to achieve ¥30 trillion ($191 billion) in annual sales and ¥3 trillion in operating profits.

 

Broader Implications

Mitsubishi Motors, partly owned by Nissan, is considering joining the merger, potentially increasing annual global sales to over 8 million vehicles. While Renault, Nissan's largest shareholder, has expressed openness to the alliance, some industry experts, including former Nissan chairman Carlos Ghosn, have questioned the compatibility of the two automakers.

A Bold Step Toward Industry Leadership

Despite mixed reactions, Honda and Nissan are optimistic that this strategic merger will position them as leaders in the global automotive industry, particularly in the electric vehicle sector. By combining their capabilities, the companies aim to redefine automotive innovation and strengthen their foothold in a highly competitive market.