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Informist, Monday, Dec. 23, 2024

 

MUMBAI – Japanese automobile companies Honda Motor Co. Ltd. and Nissan Motor Co. Ltd. have agreed to begin talks on merging and setting up a new joint holding company with a sales revenue exceeding 30 trillion yen, the companies informed the Tokyo Stock Exchange on Monday. Shares of the new joint holding company are scheduled to list in August 2026, the companies said in a statement. 

 

A memorandum of understanding was signed by the Japanese carmakers on Monday, while a definitive agreement for the integration of the two is planned for June next year. Once the integration is complete, Honda and Nissan plan to delist from the Tokyo Stock Exchange by the end of July or August next year.

 

Honda and Nissan have collaborated in the past and have a pact for joint research in fundamental technologies in platforms for next-generation software-defined vehicles. The two also announced plans for co-developing batteries and software with Mitsubishi Motors, in which Nissan holds around 24.05% stake, according to reports.

 

"The business environment for the companies (Honda Motors and Nissan Motor) and the wider automotive industry has rapidly changed and the speed of technological innovation has continued to accelerate. The memorandum of understanding between the companies announced today is aimed to serve as an option to maintain global competitiveness and for the companies to continue to deliver more attractive products and services to customers worldwide," the press release said. 

 

The companies plan to continue co-existing and to develop brands held by both equally. The name and the organisational structure of the joint holding company will be decided in June, as per the statement.

 

INDIA PRESENCE
Honda Motor was established in September 1948 in Tokyo and has a sizeable presence in India. Honda Cars India Ltd. produced 69,427 units in Apr-Nov and sold 40,153 units locally and 42,030 units abroad, as per Society of Indian Automobile Manufacturers data.

 

Nissan Motor, set up in December 1933 in Japan, entered India in 2005 but has a much smaller presence than its Japanese counterpart here. Nissan Motor India Pvt. Ltd. produced 68,521 units in Apr-Nov and sold 18,548 locally and exported 42,216 units, SIAM data showed. Nissan currently sells only one model in India, its compact sport utility vehicle Magnite.  End

 

Reported by Anand JC

Edited by Saji George Titus

 

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