According to a news report from BBC, Honda and Nissan are in early discussions about a potential merger to strengthen their position against electric vehicle (EV) manufacturers, especially in China. This move follows their March agreement to explore a strategic partnership for EVs to leverage each other’s strengths in the rapidly evolving automotive industry.
The talks, first reported by Japanese business newspaper Nikkei, are still in the exploratory phase, which means there is no guarantee of a finalized deal. Both companies have acknowledged the discussions but have not made any official announcements.
A merger between Japan’s second and third-largest car manufacturers will face challenges. Furthermore, Nissan’s alliance with French automaker Renault complicates the process Despite these obstacles, the merger reflects increasing pressure on manufacturers to adapt to growing competition from EV makers.
The automotive industry is witnessing a significant shift from petrol and diesel vehicles to electric ones, with China leading the charge. In November, China accounted for nearly 70% of global EV sales.
Honda and Nissan have been losing market share in this booming market, struggling to compete with more affordable EV brands like BYD, which recently surpassed Tesla in quarterly revenues.
Via
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