After all, why did the two big companies of auto sector, Nissan and Honda come together? Know here what is the complete plan

Finally, Japanese car companies Nissan and Honda have announced their merger. After this merger, both of them are going to become the third largest car company in the world. Both the companies have signed a Memorandum of Understanding (MOU). Mitsubishi Motors has also joined these two companies. The proposed merger includes a plan to launch a joint holding company. This merger can bring big changes in the car industry. The deadline for the business merger between Nissan, Honda and Mitsubishi Motors has begun. It plans to execute a definitive agreement regarding integration under the company by June 2025. The entire merger process is expected to be completed by August 2026. After this merger it will become the world's third largest auto manufacturing company.

Why did the merger happen?
At present, China has left everyone far behind in the electric car segment. In November 2024, 70% of electric vehicles sold in the world will be from China. Not only this, in October 2024, Chinese company BYD has overtaken Tesla in terms of sales.

What is the current situation of Honda and Nissan in India?
Talking about sales, Honda's global sales have seen a decline of 11.4% in 2024. Let us tell you that Honda entered India in 1995. Honda sold only 86,000 cars in India in 2023-24, down 5% on a year-on-year basis. Talking about Nissan, the condition of the company in India is not very good. Nissan entered India in the year 2005. Recently Nissan introduced the facelifted Magnite, which sold 2342 units in November 2024, which is 25% less than in October 2024. At the same time, the company's global sales have seen a decline of 5.5%. The news is that the company is going to lay off 1.33 lakh employees soon. Nissan also has a plant in Oragadam, Tamil Nadu, which has the capacity to manufacture 4.80 lakh cars every year. It has also sent 10 lakh cars from here to 108 countries.

What will be the impact on India?
If seen, the situation of Honda and Nissan in India is almost the same. Both these companies are struggling to sell even one car every month. Both these companies also introduced some facelift models but things did not work out. After the merger of Nissan and Honda, it will become the world's third largest automobile manufacturer. Not only this, both the companies will cooperate on common vehicle platform and new hybrid and electric cars to reduce costs.

Not only this, R&D will also be brought together, so that the development of software and electric vehicles can be accelerated. Nissan, Honda and Mitsubishi together will make 80 lakh vehicles. Nissan, Honda and Mitsubishi announced in August that they would share parts such as batteries for electric vehicles.