How china impact Japan's Automobile..!?
While electric vehicles are increasingly being used by people all over the world, and cheap cars manufactured by Chinese companies have turned the international automobile market upside down, Japanese companies that used to fly the flag in the automobile industry are now being forced to crawl on the ground. Due to this, the global automobile industry is facing a major change. While the world's two leading car manufacturers, nissan and honda, have been dominating each other's positions until now, they have decided to work together due to the worsening situation and have started talks about this. The participation of Mitsubishi Motors Corp., a member of Nissan's alliance, in the nissan and honda talks is seen as an important issue. With this, the 3 companies have been forced to merge.
Honda's net profit fell by 19.7%, while Nissan's net profit fell by a shocking 93.5%. Although the decline in profits of both companies is temporary, the business is also facing many impacts in the long term. nissan and honda have been facing a sharp decline in sales in china and other trading markets in recent times. Meanwhile, costs have also increased and the basic structure has been affected. The business has been facing various problems in a row. Meanwhile, brands like China's BYD, Great Wall, and Nio have intensified competition in the global automobile market. These Chinese companies have introduced cars at low prices and have put many companies that had been flagging in this sector in a bad position.
To combat this competition, nissan, honda, and Mitsubishi formed a major alliance for the first time in August. Through this alliance, the three companies decided to share components in the electric vehicle sector and work together on automated driving technology. This alliance has now paved the way for the merger. The talks have begun because the three giant brands believe that by combining their factory and manufacturing infrastructure resources, they can reduce costs and accelerate the development of electric vehicles. A complete merger between nissan and honda would create an automobile empire worth about $ 55 billion. Although the future of the automobile industry is certainly electric vehicles, Japanese automobile companies are continuing to work very hard to develop cars that run on hydrogen gas. If hydrogen-powered cars are made simple enough for everyday use, the growth of the electric vehicle segment will slow down, and petrol and diesel cars will disappear.