Two Japanese automakers, Honda and Nissan, have just officially announced that they will merge into one company in August 2026, with the aim of rapidly developing electrification and improving integrated software to maintain competitiveness in the global market. On December 23, the two companies signed a memorandum of understanding to begin discussions on integrating the business under a new company. The goal is for Honda and Nissan to sign a final agreement in June 2025.
Honda, Nissan, Mitsubishi could merge to ‘lead the world again’
Having a larger market capitalization, Honda will lead the processes towards integration in the early stages. Honda will nominate the president of the parent company as well as a majority of internal and external directors. In this agreement, Honda announced that it will buy back its own shares worth 1,100 billion yen (7 billion USD), equivalent to 24% of the number of shares issued excluding treasury shares. The company will buy shares on the market from January 6 – December 23, 2025.
In a joint press conference with his counterpart from Nissan, Honda President and CEO Toshihiro Mibe said the merger “will help achieve real competitive strength, which is not possible within the framework of the merger.” current cooperation between the two companies”. Nikkei Asia quoted Mr. Mibe as emphasizing that this “is not a rescue of Nissan”.
Leaders of Honda and Nissan at a joint press conference on December 23 in Tokyo, Japan
Recently, as electric vehicles have exploded, Japanese automakers have faced pressure to keep up with rivals such as Tesla (USA) and BYD (China). “As new players appear one after another and the power structure of the market is being changed, the economic scale will become stronger than before,” the newspaper said. Nikkei Asia quoted Nissan President and CEO Makoto Uchida as saying.
It is expected that the merged parent company “continues to coexist and develop the brands equally held by Honda and Nissan”. The parent company’s shares are planned for a new listing, while Nissan and Honda’s separate shares will be delisted. Thereby, the merged company is estimated to have revenue of about 200 billion USD, becoming the third largest automobile manufacturer in the world by sales volume, second only to Toyota and Volkswagen. In 2024, Honda plans to sell about 4.1 million cars and Nissan about 3.4 million cars. In recent years, Nissan’s business results have encountered many difficulties, sales have declined seriously.
Not stopping there, another Japanese car manufacturer, Mitsubishi, may also join the merger negotiations of Honda and Nissan. In a separate statement, a Mitsubishi representative announced that by the end of January 2025, the company will make a decision on whether or not to participate in the business integration between Nissan and Honda.
If we cooperate or integrate common business, Mr. Takao Kato, President and CEO of Mitsubishi, said: “We can support them by using our strengths, including business in ASEAN region and compact pickup truck segment”.
