Honda and Nissan Discuss Potential Integration, Mitsubishi Motors Leans Towards Independence
Recent reports from Liberty Times and Yomiuri Shimbun have shed light on the discussions between Honda Motor Co. and Nissan Motor Co. regarding a potential integration to form a new joint venture company by 2026. However, the future course of action for Mitsubishi Motors, in which Nissan holds a 24% stake, has become a topic of interest.
According to sources cited in Yomiuri Shimbun, Mitsubishi Motors seems inclined towards maintaining its current structure and staying independent from the merger. The company plans to retain its publicly listed status while focusing on expanding its market share in Southeast Asia, where it holds a strong position.
Unlike Honda and Nissan, which have a strong presence in the U.S. market, Mitsubishi’s strategic advantage lies in Southeast Asia, as highlighted in the report. This regional focus sets Mitsubishi apart from its potential merger partners.
Following a fuel efficiency data falsification scandal in 2016, Mitsubishi Motors faced financial challenges, leading Nissan to acquire a significant stake in the company. Nissan has since reduced its ownership to 24%, though it remains Mitsubishi’s largest shareholder, as outlined in the report.
As of January 23, Mitsubishi Motors’ market capitalization stands at approximately JPY 700 billion, significantly smaller than Honda’s JPY 7.9 trillion and Nissan’s JPY 1.6 trillion. This difference raises concerns about Mitsubishi’s influence in the decision-making processes of a joint holding company if it were to join the integration.
Collaboration Strategies
According to Yomiuri Shimbun, Mitsubishi Motors believes it can continue collaborating with Honda and Nissan through technical partnerships and vehicle supply agreements without rushing into a full integration. This approach is particularly relevant in areas such as next-generation vehicles and autonomous driving technologies, where shared resources can help mitigate development costs.
Global Sales Rankings
In 2023, Honda and Nissan’s combined global vehicle sales reached 7.35 million units, positioning them as potential contenders for the third-largest automotive group globally, behind Toyota Motor Group and Volkswagen Group. Even without Mitsubishi Motors joining the integration, the merged group could hold a significant market share.
Recent data from TrendForce reveals that Honda and Nissan ranked 7th and 8th globally in vehicle sales in 2023. However, competition is intensifying, with BYD surpassing Nissan in the first three quarters of 2024 to become the 8th largest automaker, closing in on Honda’s position.
