Honda, Nissan Aim To Merge By 2026

Honda and Nissan in Talks to Merge by 2026 Amid Growing Competition from Chinese EV Makers

Honda and Nissan announced on Monday that they are in discussions to merge by 2026, marking a historic shift in Japan's automotive industry. The proposed merger highlights the mounting pressure from Chinese electric vehicle EV manufacturers, such as BYD, and the growing dominance of Tesla in the global car market.

The combined entity would form the world's third-largest automobile group by vehicle sales, following Toyota and Volkswagen. The merger aims to provide both Honda and Nissan with greater scale, enabling them to pool resources and strengthen their competitive position against the rapidly evolving automotive market.

If successful, the merger would be the most significant reshaping of the global automotive landscape since the 2021 merger of Fiat Chrysler Automobiles and PSA, which created Stellantis in a 52 billion deal.

In addition to Honda and Nissan, smaller Mitsubishi Motors, in which Nissan is the largest shareholder, is also considering joining the merger. Mitsubishi is expected to make a decision on its involvement by the end of January.