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Media reports Japanese vehicle leaders exploring merger to challenge China’s EV power
(MENAFN) Nissan and Honda have confirmed they are in early discussions about a potential merger, a move aimed at addressing increasing competition from Chinese electric vehicle (EV) manufacturers and sluggish global EV demand. The two companies, once leaders in the automotive sector, have been struggling to keep pace with Chinese rivals like BYD, which have outperformed them in terms of technology and affordability.
The Japanese automakers have not disclosed specific details or timelines for a potential deal but emphasized they are exploring various collaboration options, including a merger, capital tie-up, or a new holding company. Honda's Executive Vice President, Shinji Aoyama, confirmed the discussions on Wednesday.
Both companies have faced challenges in the EV market, with Nissan falling behind after its early EV innovations, and Honda grappling with its commitment to selling only zero-emission vehicles by 2040. However, weak EV demand, low fuel prices, and insufficient charging infrastructure have hindered their transition from traditional fuel-based vehicles.
Industry experts suggest that a merger would allow the combined entity to compete more effectively against major players like Tesla and BYD. There are also reports that Mitsubishi Motors, which has capital ties with Nissan, may be included in the talks, potentially creating a powerhouse to better compete in the global EV market.
The Japanese automakers have not disclosed specific details or timelines for a potential deal but emphasized they are exploring various collaboration options, including a merger, capital tie-up, or a new holding company. Honda's Executive Vice President, Shinji Aoyama, confirmed the discussions on Wednesday.
Both companies have faced challenges in the EV market, with Nissan falling behind after its early EV innovations, and Honda grappling with its commitment to selling only zero-emission vehicles by 2040. However, weak EV demand, low fuel prices, and insufficient charging infrastructure have hindered their transition from traditional fuel-based vehicles.
Industry experts suggest that a merger would allow the combined entity to compete more effectively against major players like Tesla and BYD. There are also reports that Mitsubishi Motors, which has capital ties with Nissan, may be included in the talks, potentially creating a powerhouse to better compete in the global EV market.
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