Toyota reached out to Nissan after Honda merger failed: Report

In late 2024 and early 2025, the biggest headline-making event in the global automobile industry was the proposed merger of Honda and Nissan. In December 2024, Nissan and Honda signed a memorandum of understanding (MoU) to explore a potential merger. However, the negotiations between the two Japanese automobile giants didn’t last long, and the two automakers parted ways. In February 2025, the two auto companies officially ended talks. One reason behind that was that Nissan was against becoming a Honda subsidiary. Since then, while Honda and Nissan are still collaborating on electrification and software development, a full-blown merger is off the table. In the meantime, Toyota approached Nissan for an alliance.

Japan's Mainichi Shimbun national newspaper has claimed that before the merger talks between Honda and Nissan were over, Toyota had a talk with Nissan about some form of partnership. However, neither of the two Japanese car brands has said anything officially about this.

Toyota, the world’s largest automaker for the fifth consecutive year, currently holds shares in several Japanese car manufacturers. It owns 20 per cent stake in Subaru, a 5.1 per cent stake in Mazda, a 4.9 per cent share in Suzuki, and 5.9 per cent in Isuzu. On the other hand, Nissan has an alliance with partners like Renault and Mitsubishi. If Toyota and Nissan had joined hands, they would have created another mega automobile brand globally.

Nissan's restructuring plans to impact its India operations

Meanwhile, as Nissan embarks on a massive global cost-cutting and restructuring strategy, the Japanese carmaker may shut down its manufacturing operations in India. While the auto company has not issued any official confirmation, multiple Japanese media outlets, including Yomiuri Shimbun and Kyodo News, have reported that India is among the countries being considered for an exit.

This comes on the back of the Renault Group's announcement made earlier this year stating that it would acquire the remaining 51 per cent shareholding in the Renault-Nissan Automotive India Private Ltd (RNAIPL). The majority stake in the RNAIPL is currently held by Nissan Motor Corp. Purchasing this stake will allow Renault to take complete ownership of the Renault-Nissan Alliance's manufacturing plant in India.

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