Japanese Auto Giants Honda and Nissan to Merge in Bid to Compete with Tesla and Other EV Makers
Japanese auto giants Honda Motor and Nissan Motor are set to enter talks on a merger aimed at helping them compete against Tesla and other electric vehicle (EV) makers, according to the Tokyo-based Nikkei newspaper. The two companies are looking to operate under a single holding company, with the possibility of bringing in Mitsubishi Motors, in which Nissan is the top shareholder, under the holding company.
The move comes as the two firms deepened their ties earlier this year, agreeing to explore a strategic partnership on electric vehicles. The partnership is seen as a way to catch up with Chinese competitors such as BYD, who have stolen a march on EVs while Japanese firms have lost ground by focusing more on hybrid vehicles.
Honda has announced plans to double its investment in electric vehicles to $65 billion by 2030, part of its target of achieving 100 percent EV sales by 2040. Nissan has signalled similar ambitions, saying that 16 of the 30 new models it plans to launch over the next three years will be “electrified”.
The world’s auto giants are increasingly prioritising electric and hybrid vehicles, driven by growing demand for less polluting models. However, there has been a slowdown in the EV market due to consumer concerns over high prices, reliability, range, and a lack of charging points. Hybrid vehicles, which combine battery power and internal combustion engines, have proved popular in Japan, accounting for 40 percent of sales in 2022.
