Honda, Nissan In Merger Talks, Signalling Massive Industry Shift

Honda and Nissan Explore Merger to Create World's Third-Largest Automaker

Honda and Nissan announced on Monday that they are in talks to explore a merger and establish a joint holding company, a move that would create the worlds third-largest automaker. This potential merger signals a significant shift in an automotive industry currently undergoing major disruption.

The two companies aim for combined sales of 30 trillion yen R3.5 trillion and operating profits exceeding 3 trillion yen. They have set a target to conclude their talks by June 2025, with plans to establish the holding company by August 2026. Once the merger is complete, both companies' shares would be delisted from the stock market.

If realized, this consolidation would position the new entity as the third-largest auto group globally by vehicle sales, following Toyota and Volkswagen. The move comes as traditional carmakers face increasing competition from Tesla and nimble Chinese electric vehicle EV manufacturers, signaling the industry's urgent need to adapt to changing market dynamics.