Considering the Synergies of the Honda-Nissan Business Alliance Concept in Asia

On March 15, 2024, two Japanese automakers Honda Motor and Nissan Motor announced that they have signed a memorandum of understanding to conduct specific discussions toward forming a strategic partnership regarding the electrification and intelligence of automobiles. At the press conference held on the same day, two specific areas of collaboration were raised in-vehicle software platforms, and mutual complementarity between BEV core components and products, but the two companies also expressed the possibility of collaboration in a wide range of other areas. From this perspective, this article considers the synergies that the business partnership concept would bring to the Asian business activities of two companies. Since there are currently some details that are unclear and uncertain, this article will list possible areas of cooperation, rather than giving a detailed analysis.

Across Asia, if they can achieve the standardization of in-vehicle software platforms, mentioned as a specific example, they can shorten the introduction period of software-defined vehicles (SDVs) and reduce the selling price of SDVs, and the price of functions provided through OTA. In addition, if BEV components and products complement each other, the two automakers can shorten product launch times and reduce product prices. Another possibility is to fill in blank segments where Honda and Nissan do not have products. Nissan plans to share the components used for the series hybrid e-POWER technology. If these parts are shared with Honda, the cost reduction effect of mass production will be even greater, and Honda may be able to procure them at a lower price. Moreover, both companies are already mass-producing products with technology that the other does not have, such as Nissan's e-POWER and Honda's parallel strong hybrid and PHEV. By complementing each other, benefits such as shortening the introduction period and lowering product prices are expected to emerge. If collaboration extends to production, there is a possibility that synergies can be created there as well. In India and Thailand, where both companies have factories, it is expected that utilization rates will improve through mutual production consignment and OEM supply. Additionally, Honda has factories in Indonesia, Malaysia, and Thailand, and synergies could be created through OEM supply of Honda models and outsourcing production of Nissan vehicles.