Japanese Honda and Nissan Auto Concens are considering the possibility of merging against the backdrop of strict competition from China and the USA in the electric vehicle market.
According to the Kyodo news agency, Honda and Nissan are considering creating a holding company that will compete with American and Chinese electric vehicles such as Tesla and BYD.
In the case of a merger, Honda and Nissan will create an automobile concern worth $ 54 billion with an annual production of 7.4 million cars. The new company will become the world’s third car manufacturer in terms of car production after Toyota and Volkswagen.
The transaction will also become the largest in the industry since the merger of the Fiat Chrysler and PSA worth $ 52 billion in 2021, which created the Stellantis Auto -Prospect.
Last year, Honda and Nissan sold 3.98 million and 3.37 million units of cars around the world, respectively.
Global automakers increase the number of mergers and partnerships, since it is difficult for them to find funding to cover rapidly growing costs for the development of electric vehicles due to the huge resources necessary for technology development.
In March 2024, Honda and Nissan agreed to start the development of a feasibility study of strategic partnership in the field of electric vehicles and software technologies in order to reduce costs and increase competitiveness. Mitsubishi Motors, which is a partner of Nissan, also reported to join the negotiations in August 2024.