Nissan and Honda, Japanese automobile companies are gearing to take a huge decision after experiencing major decline in sales in China.
The Japanese automobiles manufacturers have been losing sale market in China, which marked nearly 70% electric vehicles (EV) sales in November as the Chinese consumers have shifted to domestic brands, selling vehicles in comparatively cheap prices.
To compete against electric vehicles powerhouse like Tesla and BYD, Nissan and Honda are discussing possible merger, as the industry moves from petrol and diesel vehicles to electric, reported Nikkei newspaper.
In March, it was revealed that Nissan and Honda would work together on EV and in August another update regarding the collaboration came out where it was shared that they will be working on battery technology.
Both companies will be benefiting from the possible collaboration as Nissan and Honda dealt with their own set of challenges this year.
While the discussion regarding potential joint venture is still in early stages, companies representative shared a statement, “If there are any updates, we will inform our stakeholders at the appropriate time.”
A representative of Japanese online trading platform operator Monex group, Jesper Koll questions the whole merger, comparing it to “rearranging the deck chairs on the Titanic”.
If the merges does happen, it would put Nissan-Honda among the top automobile companies, with 8 million vehicles sales annually.
