Honda Motor and Nissan Motor are reportedly in advanced merger talks, with plans to finalize an agreement as early as June and potentially combine operations in 2026. This potential merger would create a major automotive powerhouse, reshaping the landscape of the Japanese car industry.
According to reports, the two companies intend to establish a holding company led by a president chosen by Honda. The presidents of Honda, Nissan, and Mitsubishi Motors (Nissan’s junior partner) met with Japanese transportation ministry officials, likely to discuss their merger plans.
The merger aims to address significant challenges faced by both Honda and Nissan, particularly the intensifying competition from Chinese electric vehicle manufacturers. Nissan, facing declining sales and financial difficulties, is in greater need of a turnaround.
The potential merger was initially complicated by interest from Taiwanese manufacturer Foxconn in acquiring Nissan. However, Foxconn has reportedly paused its pursuit to observe the developments between Honda and Nissan.
If the merger proceeds, it would effectively divide the Japanese auto industry, pitting the Honda-Nissan-Mitsubishi alliance against Toyota and its partners, Mazda, Subaru, and Suzuki.
Honda and Nissan have already initiated a technical partnership, with plans to co-develop batteries, software, and other EV technologies with Mitsubishi Motors. A full merger would deepen this collaboration and potentially lead to significant cost savings and increased competitiveness in the rapidly evolving automotive market.