Honda, Nissan explore merger to challenge EV makers in China
Honda and Nissan are reportedly in talks about a possible merger to better compete with electric vehicle manufacturers, particularly in China.The move would enable both companies to pool their resources and strengthen their position in the rapidly expanding EV market.
According to the BBC, Honda and Nissan decided in March to explore a strategic partnership focused on EVs.
"As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other's strengths," the two companies said in a joint statement.
This comes as many car brands face increased competition as the industry transitions from gasoline and diesel to electric vehicles, with production in China reportedly increasing.
Honda and Nissan are reportedly in talks about a possible merger to better compete with electric vehicle manufacturers, particularly in China.
The move would enable both companies to pool their resources and strengthen their position in the rapidly expanding EV market.
According to the BBC, Honda and Nissan decided in March to explore a strategic partnership focused on EVs.
"As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other's strengths," the two companies said in a joint statement.
This comes as many car brands face increased competition as the industry transitions from gasoline and diesel to electric vehicles, with production in China reportedly increasing.
The second and third largest car manufacturers in Japan, trailing only Toyota, have been losing market share in China, which accounted for nearly 70% of global EV sales in November.
Despite projected global sales of 7.4 million vehicles in 2023, Honda and Nissan are struggling to compete with lower-cost EV manufacturers such as BYD, whose quarterly revenues surpassed Tesla's for the first time in October.
Honda and Nissan have not denied the story, which was first reported by Japanese business newspaper The Nikkei, but they have stated that it "has not been announced by either company."
"If there are any updates, we will inform our stakeholders at the appropriate time."
In March, the two companies agreed to collaborate on their EV businesses, and in August, they expanded their collaboration to include joint research on batteries and other technologies.
Furthermore, in August, they announced a collaboration with Mitsubishi to investigate intelligence and electrification.
The second and third largest car manufacturers in Japan, trailing only Toyota, have been losing market share in China, which accounted for nearly 70% of global EV sales in November.
Despite projected global sales of 7.4 million vehicles in 2023, Honda and Nissan are struggling to compete with lower-cost EV manufacturers such as BYD, whose quarterly revenues surpassed Tesla's for the first time in October.
Honda and Nissan have not denied the story, which was first reported by Japanese business newspaper The Nikkei, but they have stated that it "has not been announced by either company."
"If there are any updates, we will inform our stakeholders at the appropriate time."
In March, the two companies agreed to collaborate on their EV businesses, and in August, they expanded their collaboration to include joint research on batteries and other technologies.
Furthermore, in August, they announced a collaboration with Mitsubishi to investigate intelligence and electrification.
Leave A Comment