Honda and Nissan Merger: Japan's major automobile manufacturers Honda and Nissan have now announced their merger after long speculations and discussions. On Monday, both the companies signed a Memorandum of Understanding (MoU) in this regard. This merger is taking place at a time when the automobile industry is rapidly moving away from conventional fuels and towards electric vehicles (EV).

It will become the third largest company

Nissan's partner Mitsubishi Motors is also joining this merger. If this deal is finalized, this new group company will become the world's third largest vehicle manufacturer based on sales. This group will be in third place after Toyota and Volkswagen and will be in a better position to compete with Tesla and Chinese electric vehicle manufacturers.

Will become a company bigger than $50 billion

The combined company will be worth more than $50 billion. Currently, Honda's market cap is more than $40 billion, while Nissan's is $10 billion and Mitsubishi's is slightly less.

Let us tell you, jointly these three companies will make about 80 lakh vehicles every year. Talking about Toyota, it made 11.5 million vehicles in 2023. Honda alone made 4 million vehicles last year, Nissan 3.4 million and Mitsubishi 1 million vehicles.

Cooperation in electric vehicles

Earlier this year, Honda, Nissan and Mitsubishi announced plans to share electric vehicle (EV) parts and conduct joint research on autonomous driving software. The collaboration is meant to keep up with rapid changes in the industry and counter the growing dominance of electric vehicle manufacturers.

A Honda spokesperson said, "This merger is an effort to unite and adapt to a rapidly changing marketplace. Together, we can better address challenges such as electrification and autonomous driving."

The automobile industry of the whole world will be affected

If this merger is successful, the Honda-Nissan-Mitsubishi group will be in a position to challenge giants like Toyota, Volkswagen and Tesla. Experts believe that this merger is necessary for Japanese vehicle manufacturers, as these companies are currently lagging behind their competitors in the electric vehicle market.