One of the biggest automotive stories of 2024 involves a potential merger between two Japanese giants: Nissan and Honda.
Reports indicate the companies are in talks to join forces, a move that could create the world’s third-largest auto group by vehicle sales, reaching 8 million annually. Speculation also suggests Mitsubishi Motors, in which Nissan holds a 24% stake, may join the deal, further strengthening the alliance.
The merger comes as automakers face mounting challenges, including fierce competition from Tesla and Chinese EV makers like BYD, rising development costs, and shifting global markets. Nissan’s $24 billion surge in market value this year reflects optimism about the tie-up, but Honda has expressed caution.
The deal could address mutual challenges like declining sales, high production costs, and the need for advanced EV technology. However, analysts highlight potential roadblocks, including regulatory scrutiny in Japan and complex capital ties between Nissan and Renault.
2025 is expected to be pivotal for both companies as they navigate these obstacles and the broader transformation of the auto industry toward electrification. The merger could mark a turning point, redefining how legacy automakers compete in an increasingly competitive global market.
