Nissan, Honda may gain in India from potential merger

Merger could align the cos' moves to collaborate in electrification and software development

- Alisha Sachdev

Japan's Nissan Motor Co. and Honda Motor Co. have begun discussions about a potential merger, Japanese news wire Nikkei reported. If the talks materialize, the merger could benefit significantly their India operations, providing much-needed investment and product portfolio enhancements to strengthen their presence in one of the world's most competitive automotive markets.

A person aware of the matter said partnership talks leading to a merger have been under way for over a year and a half. "They have synergies, and there will be a lot of exchange of technology. Nissan has small cars, Honda has bigger cars. Nissan has EVs and hybrids, while Honda is strong in strong hybrids," the person said on the condition of anonymity.

While both Honda and Nissan have issued statements denying any formal decision, the possibility of a merger aligns with their ongoing exploration of collaborating in electrification and software development. In August, Nissan, Honda, and Mitsubishi Motors Corp. signed a memorandum of understanding (MoU) to discuss frameworks for advancing vehicle intelligence and electrification, signaling a strategic alignment of goals.