How tech, supply chain stack up for a joint Honda-Nissan holding company

Following the successful merger of Honda and Nissan, the newly formed entity will leverage each other’s global supply chains. In this analysis, we analyze the impact of this merger on the transition to electric vehicles, along with the procurement of key components such as batteries and electric motors. The extent of reshuffling in the companies' global supply chains and capacity cuts are yet to be ascertained, however.

On Dec. 23, 2024, leading Japanese carmakers Nissan Motor Co. and Honda Motor Co. signed a memorandum of understanding (MOU) to further ongoing discussions for establishing a joint holding company, overarching the Honda and Nissan brands. While the merger could create the world’s third-largest vehicle manufacturer by sales, Nissan and Honda expect that the revenue of a joint holding company could exceed ¥30 trillion ($192.66 billion) with a 10% operating profit margin.