Factbox-How Nissan and Honda stack up towards one another

(Reuters) – Japanese carmakers Honda (NYSE:HMC) and Nissan (OTC:NSANY) are in talks to deepen ties, based on sources, together with a potential merger, as challenges from Tesla (NASDAQ:TSLA) and Chinese language rivals urge a restructuring of Japan’s auto business.

The 2 Japanese corporations mixed would turn into the world’s third-largest auto group by car gross sales after Toyota (NYSE:TM) and Volkswagen (ETR:VOWG_p).

SALES

Honda offered 3.98 million automobiles globally final yr, whereas Nissan offered 3.37 million automobiles on a preliminary foundation.

Their mixed 2023 gross sales totalled 7.35 million automobiles, greater than the 7.31 million reported by South Korea’s Hyundai (OTC:HYMTF) and its affiliate Kia, presently the world’s third-largest auto group.

PRODUCTION

Honda produced 4.19 million automobiles globally final yr, whereas Nissan manufactured 3.44 million automobiles.

EMPLOYEES

Honda had 194,993 staff as a consolidated group, whereas Nissan employed 133,580 as of the tip of March, based on securities filings.

MARKET CAPITALISATION

Honda’s market capitalisation is about $44 billion, whereas Nissan’s is about $10 billion after a share value surge on Wednesday, which means a full merger can be greater than the large $52 billion deal between Fiat (BIT:STLAM) Chrysler and PSA in 2021 to create Stellantis (NYSE:STLA).

MAJOR MARKETS

Honda’s most necessary market is the US, accounting for a 3rd of its 2023 car gross sales. Mixed with Canada and Mexico, North America represented 37% of gross sales, whereas China’s share was 31% and Japan’s was 15%. Europe accounted for less than 2% of gross sales.

Nissan’s greatest market can be North America, accounting for 37% of its automobiles offered in monetary yr 2023, with the U.S. representing 27%, China at 23%, Japan at 14% and Europe at 10%.

ELECTRIFICATION TARGETS

Honda has a aim of boosting electrical car output to greater than 2 million models per yr by 2030, when the automaker goals to transform 40% of its new automobile gross sales to EVs and gasoline cell automobiles. By 2040, Honda will promote solely EVs and FCVs.

As gasoline-electric hybrid vehicles have gained recognition in its key North American market, Honda on Wednesday introduced an extra 2030 goal to promote 1.3 million hybrid automobiles yearly, double its 2023 ranges.

Nissan, as soon as an EV pioneer that launched the primary mass-market electrical automobile Leaf in 2010, goals for EVs and hybrids to make up 60% of its world gross sales by 2030, as introduced in its newest technique replace issued in March.

($1 = 153.4400 yen)