Japanese automakers Honda and Nissan are exploring a merger that could position them as the world’s third-largest car manufacturer by sales, as the industry accelerates its transition to electric vehicles (EVs). Mitsubishi Motors, a smaller partner in Nissan’s alliance, is also participating in talks.
Honda President Toshihiro Mibe announced in an AP report that the companies aim to finalize a formal merger agreement by June 2026 and establish a joint holding company listed on the Tokyo Stock Exchange by August of the same year. While Honda would lead the management, the brands will retain their individual identities.
The merger comes as Japanese automakers lag behind global competitors like Tesla and China’s BYD in EV development. By uniting resources, Honda, Nissan, and Mitsubishi hope to scale up operations to compete with automotive giants such as Toyota and Volkswagen.
Nissan’s expertise in battery technology, EVs, and hybrid powertrains could benefit Honda, while Honda’s leadership would provide strategic direction. If successful, the merger would produce approximately 8 million vehicles annually—short of Toyota’s 11.5 million units in 2023 but significant enough to shake up the global automotive landscape.
Challenges remain, however, with Mibe acknowledging that the merger’s success is not guaranteed. Nissan CEO Makoto Uchida described the company’s financial situation as “severe,” but expressed optimism that the integration could create value for customers and stakeholders.
