Nissan and Honda merger: Nissan and Honda merger will become the world's third largest car company.

Nissan and Honda merger : Major car companies Honda Motor and Nissan Motor have agreed to begin full-scale talks for a possible merger. The two Japanese automakers are aiming to finalize the deal by June 2025 and on Monday announced a basic agreement to start the process. According to the outline of the deal announced in Japan, they aim to set up a common holding company for a listing in August 2026. Nissan's partner Mitsubishi is also included in this merger.

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Tesla, the largest car company
If this merger is successful, it will become the world's third largest car manufacturer. Currently, the largest car company in the market is Tesla (with a capitalization of Rs 119 lakh crore).

Japan's Toyota at second place
At second place is Japan's Toyota (Rs 19.63 lakh crore) and at third place is China's BYD (Rs 9.09 lakh crore). Currently, the market capitalization of Honda is Rs 3.40 lakh crore and that of Nissan is Rs 85 thousand crore, due to which both the companies are not included in the top-10. But, after the merger, the market capitalization and income of both of them will be more than BYD.

Honda is at seventh place and Nissan is at ninth place.
If we look at car sales, Japan's Toyota (7.80 lakh units) is at first place, while Honda (3.50 lakh units) is at seventh and Nissan (3.30 lakh units) is at ninth place.

Chinese company BYD
China has been successful in defeating companies around the world, especially in the electric vehicle (EV) sector. China accounted for 70% of all EVs sold in the world in November 2023. In October, Chinese company BYD overtook Elon Musk's Tesla. At the same time, due to the rising cost of EV, Europe's leading car manufacturer Audi is closing its plants in Europe and its parent company Volkswagen is also closing its business. For all these reasons, Japanese companies have felt the need for merger, so that they can stay ahead in global competition.

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New innovations in the field of self-driving vehicles
The merger of Nissan and Honda will bring many important changes in automotive technology. Especially in the field of electric vehicles (EV) and self-driving vehicles, the direction of new innovations will open. Working together of the three companies will utilize shared resources, which will accelerate the development of new technologies and products. Additionally, the use of a shared vehicle platform will reduce costs and different brands will be able to grow while maintaining their identity.

Research and Development
With this merger, the estimated annual income of the combined unit can be around Rs 16.28 lakh crore. This amount will be used for research and development and market expansion, which will further accelerate innovation in the automotive sector. Apart from this, the supply chain ecosystem will also become flexible, which will reduce the cost of production and increase the stability of supply.