MUMBAI : In a major shift, Honda & Nissan have officially called off their proposed business integration, citing the need for quicker decision-making in the rapidly evolving electric vehicle (EV) market. The breakdown of discussions stemmed from a disagreement over Honda’s proposed restructuring, which would have made Nissan its subsidiary through a share exchange rather than forming a joint holding company. Despite this, both automakers will continue their strategic partnership to advance intelligent and electrified vehicle technologies.

The abandoned merger was part of a broader effort by Japan’s leading automakers to strengthen global competitiveness. Initially, Honda & Nissan had signed a memorandum of understanding (MoU) in March 2024, focusing on next-generation vehicle intelligence and electrification. The agreement was expanded in August to include joint research on software-defined vehicle (SDV) platforms. By December, talks had progressed towards a potential integration under a joint holding company, with Mitsubishi Motors also considering joining the alliance.

Had the integration gone forward, Honda & Nissan aimed to combine their management resources, enhance R&D capabilities, optimise manufacturing, and create significant cost synergies. They projected combined annual revenues exceeding 30 trillion yen and an operating profit of more than 3 trillion yen. Mitsubishi, which was evaluating its role in the deal, planned to make a final decision by January 2025.

Despite the setback, Honda & Nissan remain will continue to collaborate in key areas such as vehicle electrification and intelligence. While full-scale integration is off the table, their ongoing partnership signals a continued focus on innovation & market adaptability in an industry being reshaped by electric mobility & smart technologies.