Honda-Nissan joined hands! Signed MoU for Joint Holding Company, know its meaning – Honda and Nissan officially begin merger Sign MOU For A Joint Holding Company here is complete details

There was a big discussion going on in the world automobile market for the last few days. There were news of merger between Japanese giant car companies Nissan, Honda and Mitsubishi. Finally, putting an end to all the speculations, these three companies have announced their coming together and have signed an MoU for a joint holding company. Nissan and Honda aim to together create the largest car company.

Japanese automakers Honda Motor Co. and Nissan Motor Co. Ltd., along with Mitsubishi Motors, announced on Monday that they have signed a memorandum of understanding (MOU) to begin discussions on a potential merger. This proposed merger includes plans to start a joint holding company. Which is being seen as a plan to compete with rivals like Tesla and Chinese car company Build Your Dream (BYD) in the electric vehicle segment.

Target of 30 trillion yen:

The company says that the target of this merger is to achieve annual sales of 30 trillion yen (approximately Rs 16.30 lakh crore) and operating profit of more than 3 trillion yen (Rs 1.62 lakh crore). These three companies are planning to finalize the discussions by June 2025. It is believed that this holding company can become operational by August 2026. With the launch of the holding company, shares of both Honda and Nissan will be delisted at the end of July and August 2026, with plans to list them on the stock exchange later.

Honda, Nissan and Mitsubishi together will produce around 8 million vehicles annually, enabling them to compete with global giants like Toyota Motor Corporation and Volkswagen AG. Honda’s influence will be seen the most in this joint venture because it is the largest company in this partnership. On the other hand, Nissan’s sinking boat is expected to get a big support.

Work will be done on new technology:

After coming into existence, this joint holding company will give a new direction to the world automobile market. Where Toyota and Volkswagen are at number one and two positions, Honda-Nissan will get a chance to strengthen its presence. Under this joint venture, work will be done on new technology, vehicle platform and design.

Since research, development and operation will be done together, it will also facilitate manufacturing of vehicles at low cost. The effect of which will not only be seen on the prices of vehicles but it is also expected to increase the profits. Along with new technology, work will also be done on Next Generation Software Defined Vehicles (SDV’s).

Nissan and Honda have announced their plans to launch a joint holding company through a joint share transfer. Which will be the parent company of both the companies. This will be decided after the general meeting of shareholders of each company. For this the company will talk to the concerned authorities and take permission from them. For this, companies have also released a timeline plan.

Makoto Uchida, director, president and CEO of Nissan, said: “Honda and Nissan have begun to consider a business integration, and synergy between the two companies will be researched in many areas. We hope that if this plan comes to fruition It will be successful.”

Toshihiro Mibe, director of Honda, said, “At this time of change in the automobile industry, which is said to happen once every 100 years, we hope that Mitsubishi Motors’ participation in the business integration of Nissan and Honda will Will get a big boost. Apart from this, we will be successful in starting a strong joint venture.

Takao Kato, Director, President and CEO of Mitsubishi Motors, said, “In this era of change in the automotive industry, the business integration between Nissan and Honda is fully expected to be successful. It will also benefit the businesses associated with Mitsubishi Motors.”