Honda and Nissan to Create World’s 3rd Largest Auto Group—What It Means for the Global Market

Honda and Nissan are discussing a potential merger, signaling a significant transformation in Japan’s automotive sector. Reports suggest that Honda may lead the governance of a new holding company with an executive structure reflecting its leadership.

According to the Nikkei, the two automakers aim to establish the holding company by August 2026 and plan an immediate initial public offering (IPO).

The companies officially announced their discussions on Monday, targeting a final agreement by June 2025.

Insiders reveal that Honda seeks to control the new entity’s governance. It intends to appoint the president and secure a majority on the board of directors, which indicates Honda’s clear ambition to lead the integration process.

On Monday morning, Honda CEO Toshihiro Mibe and Nissan CEO Makoto Uchida met with key government agencies, including the Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport and Tourism, to inform officials about the merger talks.

Later in the day, the automakers are expected to sign a memorandum of understanding and hold a press conference to share further details.

Notably, Mitsubishi Motors CEO Takao Kato is also set to attend the press conference, sparking speculation about a potential three-way merger in the future.

If the deal proceeds, it would create the world’s third-largest automotive group, with combined global annual sales surpassing 8 million vehicles.

The auto industry is undergoing a “once-in-a-century” transformation, driven by the shift to electric vehicles and advancements in AI-powered autonomous driving technologies.

Newcomers like Tesla and China’s BYD have intensified competition, pushing traditional automakers to adapt. The proposed Honda-Nissan merger appears to be a strategic response to these challenges, aiming to strengthen global competitiveness and navigate the industry’s seismic shifts.

Industry analysts are closely watching how this potential mega-merger could reshape Japan’s automotive sector and the global market.