Honda and Nissan, two of Japan’s largest automakers, have confirmed they are in discussions to merge their operations under a joint holding company. Mitsubishi Motors, a smaller member of the Nissan alliance, is also participating in talks to integrate their businesses.
The merger, which aims to create the world’s third-largest automaker by sales, comes as the industry accelerates its transition from fossil fuels to electric vehicles. By combining forces, the companies seek to cut costs and better compete with EV leaders like Tesla and BYD.
Honda President Toshihiro Mibe stated that the holding company will unify operations while retaining the individual brands. The companies plan to finalize the merger agreement by June and list the holding company on the Tokyo Stock Exchange by August 2026.
If successful, the merger would create an entity worth over $50 billion, enhancing their ability to compete with major players such as Toyota and Volkswagen. Toyota already benefits from technology partnerships with Mazda and Subaru, making this merger a significant move to reshape Japan’s automotive landscape.
