Honda-Nissan-Mitsubishi Merger Confirmed: Japanese Giants Join Forces

In a landmark move for the global automotive industry, Japanese auto giants Honda, Nissan and Mitsubishi Motors have announced a merger to form a unified holding company, marking a major step toward integrating their operations. The agreement, expected to be finalized by June 2025, will see Honda taking the lead with majority control and key leadership positions in the new entity, which is projected to launch by August 2026.  

This strategic alliance aims to boost global competitiveness by combining resources and reducing production costs. With an estimated combined sales worth USD 191 billion (Rs 1.62 lakh crore), the merger positions the trio as the world’s third-largest automaker by volume. The announcement mirrors the scale of Stellantis’ creation in 2021 following the Fiat Chrysler and PSA Group merger.  

For Nissan, struggling with declining profits and sales in key markets like the United States and China, the merger represents a critical opportunity for financial recovery. Nissan’s CEO Makoto Uchida emphasized the deal’s potential to deliver greater value to customers through cost-sharing and enhanced innovation.  

The alliance is set to prioritize electric vehicles (EVs) and software development, signalling a concerted push to rival Toyota and global EV leaders like Tesla and BYD. Both Honda and Nissan are preparing to launch EVs in India, potentially collaborating on upcoming models such as Honda’s Elevate EV and Nissan’s Ariya SUV. 

India, an important market for both brands, will likely witness expanded EV portfolios and strengthened operations as the merger unfolds, transforming the competitive domain.