Honda and Nissan both faced stagnating or declining global vehicle sales in 2024, reinforcing the need for a strategic partnership. Both automakers struggled in China, a key market, losing significant market share to rising domestic competitors and Tesla. With sales under pressure, a potential merger could help them scale operations, increase efficiencies, and compete more effectively on the global stage.
Honda’s global sales fell to 3.8 million units, a 4.6% decline from the previous year, while production dropped 11% to 3.7 million. Nissan fared slightly better, but its results were largely stagnant—sales dipped 0.8% to 3.3 million units, and production fell 8.7% to 3.1 million. In China, Nissan’s sales fell 12%, while production dropped 14%. Honda was hit even harder, with a 35% decline in production and a 30% drop in sales.
Nissan saw a modest 2.8% sales increase in North America, but production still declined 13.3%—a reflection of shifting consumer demand and a lack of competitive hybrid models. The automaker has announced restructuring efforts, including cutting work shifts and offering buyouts at U.S. plants, but its reluctance to close factories remains a challenge.
If Mitsubishi ultimately joins Honda and Nissan’s proposed alliance—a move that remains uncertain—the trio could achieve 8 million annual deliveries, putting them within range of Volkswagen’s 9 million and Toyota’s 10.8 million. However, the merger is far from finalized. Renault, which owns a 36% stake in Nissan, has raised concerns about the deal and wants its stake’s value fully recognized.
Honda and Nissan aim to finalize a merger framework by the end of January, with the full deal expected to be completed by June. If successful, their combined scale could make them a more formidable competitor in the global automotive market.
