Honda and Nissan Deny Merger Talks Amidst EV Competition

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Automotive Industry,Electric Vehicles,Merger Talks

Honda and Nissan have denied reports of merger talks by Nikkei, stating they are exploring various possibilities for future collaboration. The companies aim to leverage their strengths and will inform stakeholders of any updates. This comes amidst increasing competition from Chinese EV makers, pressuring legacy brands to prioritize profitability in their EV ventures.

The two companies have increased ties in recent months as they face heavy competition from Chinese EV makers that has added pressure on legacy brands struggling to make enough profit from their EV ventures.

The two had combined global sales of 7.4 million vehicles in 2023, but are grappling with challenges from EV makers, particularly in China, where BYD too have slowed investments on EVs as high borrowing costs and poor charging infrastructure hinder their adoption despite government incentives.) is locked in acrimonious talks with its union over cost cuts as it struggles with falling demand and rising costs.

The automakers are looking to operate under a single holding company and are expected to soon sign a memorandum of understanding for the new merged entity, the Nikkei reported.), in which Nissan is the top shareholder with a 24% stake, under the holding company, to create one of the world's largest auto groups, the report said.

Last month, the company said its half-year net earnings were down more than 90% from a year ago and cut its annual operating profit forecast by about 70%.

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