Honda shares fall marginally amidst possible merger with Nissan

Shares of Honda India Power Products Ltd fell 0.73 per cent to ₹3,033.00 on the BSE at 2.32pm

Japanese automakers Honda Motor Co. and Nissan Motor Co. had reportedly been in preliminary discussions about a potential merger, according to a report from Nikkei. Such a deal would create a formidable rival to Toyota Motor Corp., effectively consolidating the Japanese auto industry into two major camps.

Furthermore, the merger would provide both companies with greater resources to compete globally, particularly in the face of rising competition from electric vehicle manufacturers like Tesla and Chinese automakers. This move had followed earlier collaborations between Honda and Nissan on electric vehicle batteries and software.