Honda and Nissan have unveiled a plan to merge by 2026, forming the world’s third-largest automaker by sales, as reported by the Financial Times on December 23. The merger would combine their market values to USD 54 billion, rising to USD 58 billion if Mitsubishi Motors joins the initiative. The deal, driven by the need for scale to compete with Chinese automakers, is expected to be finalized by June 2025. If Mitsubishi participates, the group's annual sales would surpass 8 million vehicles, ranking behind only Toyota and Volkswagen.
The merged entity aims for ¥30 trillion (USD 305 billion) in annual sales and over ¥3 trillion in operating profits, with Honda leading the new holding company set for a 2026 listing. The plan includes significant cost savings, resource sharing, and investments in electrification, software, and autonomous driving technologies. Despite challenges such as Nissan's ongoing restructuring and its complex relationship with major shareholder Renault, the merger is seen as critical for maintaining competitiveness in the evolving global automotive landscape.
Meanwhile, the Market Intelligence & Consulting Institute (MIC) forecasts significant growth in the global electric vehicle (EV) market, projecting 19.03 million units in 2025, up 13.7% from 2024. Although EV market expansion slowed in 2024 due to trade protectionism and reduced subsidies, China's dominance remains, accounting for 60% of global EV sales from 2019 to 2023, MIC noted.