Global Citizenship: Redefining Connection and Responsibility in Digital Transformation
The Marketing Minute: Strategic Short-form Content Builds Brand Momentum
SMT Perspectives and Prospects: Artificial Intelligence, Part 5: Brain, Mind, Intelligence
Diverging Electrification Goals between Honda and Nissan; Accelerated Resource Integration will be the Top Priority Post-Merger
December 25, 2024 | TrendForceEstimated reading time: 2 minutes
Honda and Nissan—two of Japan’s largest automakers—announced on December 23rd, 2024, that they have entered into merger negotiations, with plans to finalize an agreement by June 2025. Mitsubishi Motors is also expected to join the partnership.
TrendForce reports that if the three automakers successfully merge, the immediate priority will be resource integration to achieve cost savings through economies of scale and accelerate EV development plans.
In 2023, Honda and Nissan ranked 7th and 8th globally in vehicle sales, respectively. However, in the first three quarters of 2024, BYD surpassed Nissan to become the 8th largest automaker, closing in on Honda in 7th place.
Beyond sales competition, Honda and Nissan are facing mounting pressure from their electrification efforts. TrendForce projects that both companies will have a market share of less than 5% in the EV market (including BEVs, PHEVs, FCVs, and HEVs) in 2024. This places them at a disadvantage in BEV and PHEV markets compared to Tesla and leading Chinese automakers, while in the HEV market, both brands continue to trail behind Toyota.
TrendForce’s analysis indicates that while the merger could boost overall vehicle sales and may surpass the Hyundai-Kia Group in 2025, the short-term impact on the EV sector will likely be limited to resource integration rather than immediate sales growth. Honda aims to adapt the Adapted Electric Platform (AEP) for EV production as a transitional measure, focusing on accelerating BEV deployment in the Chinese market. The company targets achieving 100% global sales of BEVs and FCVs by 2040. Meanwhile, Nissan is prioritizing its e-POWER hybrid technology, with plans for all new vehicle models to feature either e-POWER or fully electric drivetrains by 2030.
While Mitsubishi Motors’ contribution to overall vehicle sales remains modest, Mitsubishi Group’s expertise in key EV components, such as electric motors and inverters, is invaluable. Leveraging Mitsubishi Motors' supply chain relationships may support the newly formed company's EV ambitions.
However, integrating the unique technologies and operational strengths of Honda, Nissan, and Mitsubishi Motors will be a complex and time-consuming process. Following the merger, one of the most pressing tasks will be to define a clear and unified electrification direction, including the expedited rollout of next-gen EV platforms.
TrendForce highlights that EVs are projected to account for approximately 25% of global new car sales in 2024. Although the growth rate of the global EV market has slowed, the overall upward trend remains intact. Global EV sales are expected to reach 26 million units by 2025, capturing nearly 30% of total new car sales. In this rapidly evolving landscape, no automaker can afford complacency in their electrification efforts.
Share on:
Suggested Items
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
04/18/2025 | Andy Shaughnessy, Design007 MagazineIt’s been a busy week in our industry. Never a dull moment! If you’ve been paying attention to our tariff tumult with China and its effect on the stock market, especially if your company does a lot of business with China, you might be tempted to call in a Xanax refill about now. But hang tight. This is still early in the first quarter. This brouhaha serves to underscore our need to manufacture critical laminates and components in the U.S. In this week’s must-reads, we have a potpourri of articles covering tariffs, the next generation of HDI, the three-year anniversary of IPC Mexico, a novel green technology, and emerging design trends.
Real Time with... IPC APEX EXPO 2025: Aster–Enhancing Design for Effective Testing Strategies
04/18/2025 | Real Time with...IPC APEX EXPOWill Webb, technical director at Aster, stresses the importance of testability in design, emphasizing early engagement to identify testing issues. This discussion covers the integration of testing with Industry 4.0, the need for good test coverage, and adherence to industry standards. Innovations like boundary scan testing and new tools for cluster testing are introduced, highlighting advancements in optimizing testing workflows and collaboration with other tools.
IPC President’s Award: Xaver Feiner
04/17/2025 | Nolan Johnson, SMT007 MagazineThroughout his career, Xaver Feiner, vice president of marketing and sales at Zollner Elektronik, has developed extensive expertise in account management and new business development with a strong focus on the semiconductor industry, aerospace, and industrial electronics. Xaver has cultivated a profound understanding of global markets and remains deeply engaged with the challenges and opportunities presented by digital transformation. Since 2020, he has been an active member of the IPC Europe Advocacy Group, where he is dedicated to advancing the position of the electronics industry and the EMS sector across Europe.
New High Power 3D AXI for Power Electronics from Test Research, Inc.
04/17/2025 | TRITest Research, Inc. (TRI), a leading provider of Test and Inspection solutions for the electronics manufacturing industry, proudly announces the launch of the 3D AXI TR7600HP system. Designed for power semiconductor inspection, the TR7600HP enhances accuracy and efficiency in detecting defects in components such as IGBTs, MOSFETs, SiC inverters, and Paladin Connectors.
IPC APEX EXPO 2025 Learning Lounge: Education on the Show Floor
04/16/2025 | Andy Shaughnessy, Design007The conference portion of IPC APEX EXPO has been providing educational opportunities for attendees since the first show. But recently, show managers decided to expand education onto the show floor.