Honda, Nissan explore merger amid slowing EV sales

Rival automakers Honda and Nissan are considering a partnership, per Nikkei. The Japanese automakers are discussing a merger as they grapple with slumping EV sales in the US and China.

Toyota is the top manufacturer in Japan, but a collaboration between the eighth and ninth-largest automakers in the world could challenge that. The deal could also include Mitsubishi.

However, hurdles include potential US regulatory scrutiny, particularly regarding both the automakers’ exports from Mexico.

The Japanese companies are struggling to keep pace with China’s BYD and America’s Tesla. The Chinese EV market is the largest, accounting for nearly 70% of global sales.