Honda and Nissan consider a merger to face the uncertain future of electric vehicles.
Currently, they have approximately five electric vehicle models available on the market in total.
Honda and Nissan are in talks to merge with the aim of competing more effectively against electric vehicle manufacturers like Tesla and BYD. According to anonymous sources, both companies are discussing the possibility of signing a memorandum of understanding that will outline plans for the creation of a new holding company in which they will share equity and develop their businesses.
Additionally, Honda and Nissan are considering integrating Mitsubishi into these negotiations, emulating a model similar to that adopted by several Japanese electronics brands, such as Konica Minolta and JVCKenwood, among others. The two automakers were already collaborating on the development of electric vehicle technology and software, having extended an invitation to Mitsubishi to be part of this joint effort.
Between the two companies, Nissan is in a more critical situation and may face difficulties surviving beyond a year unless Honda decides to acquire shares in Nissan. Reports indicate that Nissan's net profits during the first half of 2024 fell by more than 90% compared to the previous year, forcing the company to cut its forecast for annual operating profits by nearly 70%. Both companies issued statements declaring that they are exploring various possibilities for future collaboration, leveraging each other's strengths.
The growth of the electric vehicle market has shown signs of slowing down globally, while Chinese brands are outperforming manufacturers from the U.S., Europe, and Japan. Reports indicate that Japanese automakers are losing a significant amount of market share in East and Southeast Asia to Chinese brands that have expanded into countries like Indonesia.
Honda is preparing to launch its new Honda Zero EV platform next year and has found some success in the U.S. with its electric SUV, the Prologue, which is based on a collaboration with GM. Meanwhile, Nissan has lost the advantage it had as a pioneer with its 2011 Leaf model and has only launched one additional EV model, the Ariya. Both companies, along with their local competitor Toyota, have added more hybrid models than fully electric vehicles to their product plans. This year, Nissan announced that it will have 16 “electrified” models by 2026, while Honda plans to introduce an appealing hybrid sports coupe, the Prelude, next year.
