Honda and Nissan have reportedly held exploratory talks about a possible merger to help compete against electric vehicle (EV) makers in China.
In March, the two Japanese automakers agreed to explore a strategic partnership for EVs.
The two firms responded to the BBC with identical statements, saying: “As announced in March this year, Honda and Nissan are exploring various possibilities for future cooperation, leveraging each other’s strengths. are doing.”
Many car brands are facing increasing competition as the industry shifts from petrol and diesel vehicles to electric vehicles as production in China accelerates.
Honda and Nissan, Japan’s number two and number three automakers behind Toyota, are losing market share in China, which accounted for about 70 percent of global EV sales in November.
Both brands are expected to sell 7.4 million vehicles globally in 2023, but are struggling to compete with affordable EV makers such as BYD, which beat Tesla for the first time in October. Incomes have increased.
Honda and Nissan have not denied the story, which was first reported by Japanese business newspaper The Nikkei, but said it was not something either company had announced.
“If there are any updates, we will inform our stakeholders in due course.”
The two companies agreed to collaborate on their EV businesses in March, and deepened their relationship in August by agreeing to work together on batteries and other technology.
In August, the two companies also made an announcement Agreement with Mitsubishi to discuss intelligence and power supply.
“The idea that some of these smaller players can survive and thrive is becoming more difficult, especially when you add the complexity of all these additional Chinese manufacturers,” said Edmunds analyst Jessica Caldwell. who have come in and are competing quite strongly.”
“It is necessary only to live, not only to survive, but only to endure the future.”