Reports say Honda and Nissan are in merger talks

Honda and Nissan have reportedly held exploratory talks about a potential merger to help them compete against electric vehicle (EV) makers, especially in China.

In March, the two Japanese carmakers agreed to explore a strategic partnership for EVs.

Both companies responded to the BBC with similar statements, saying: “As announced in March this year, Honda and Nissan are exploring various possibilities for future cooperation, taking advantage of each other’s strengths. Are.”

It comes as many car brands grapple with increasing competition as the industry shifts from petrol and diesel vehicles to electric vehicles, with production rapidly increasing in China.

Honda and Nissan, Japan’s number two and number three carmakers after Toyota, are losing market share in China, which accounted for about 70% of global EV sales in November.

The two brands had combined global sales of 7.4 million vehicles in 2023, but are struggling to compete with cheaper EV makers like BYD, which saw its quarterly revenue rise, overtaking Tesla for the first time in October.

Honda and Nissan have not denied the story, which was first reported by Japanese business newspaper The Nikkei, but said it was “not something that has been announced by either company”.

“If there is an update, we will inform our stakeholders at the appropriate time.”

The two companies agreed in March to collaborate on their EV businesses and deepened their ties in August by agreeing to work together on batteries and other technology.

Both companies also made an announcement in August Agreement with Mitsubishi to discuss intelligence and electrification.

“The idea that some of these smaller players can survive and thrive is becoming more challenging, especially when you add the complexity of all the additional Chinese manufacturers that have come in,” said Edmunds analyst Jessica Caldwell. And competing very strongly.”

“Survival is necessary in a way, not only to survive, but also to shape the future.”