Nikkei reports that Nissan, Honda, and Mitsubishi Motors may combine in order to improve their market share in the expanding electric vehicle industry.

According to Reuters, a merger between Nissan and Honda would probably be the biggest in the auto sector since Fiat Chrysler and PSA Groupe's $52 billion agreement to create Stellantis in January 2021.

7.4 million. That is the total number of cars sold worldwide in 2023 by Honda (4 million) and Nissan (3.4 million). That year, Toyota sold 11.2 million cars, a 7.2% increase over the previous year, making it the best-selling Japanese carmaker. Mitsubishi sold a little more than 800,000 cars.

Following the Japanese automakers' August strategic alliance to share automotive software and components, there has been a rumored merger including Nissan, Honda, and Mitsubishi. As part of the agreement, the three firms agreed to develop axles, batteries, and other technology while working together on their electric car businesses. Nissan lowered its year operating profit projection by about 70% in November and reported that its half-year net earnings had dropped more than 90% from the prior year. Both manufacturers have had difficulty selling cars in China and Southeast Asia; between January and November, Honda's and Nissan's sales volumes in the two areas fell by 30.7% and 10.5%, respectively. The Financial Times said that Nissan was looking for an investor to replace equity formerly held by Renault, which had severed its decades-long alliance with the firm, and that Honda was not ruling out purchasing its shares. This suggests that the two companies will soon combine.