Additionally, Nissan’s stock price has dropped to the point that it is seen as a bit of a steal. Its shares traded in Tokyo increased 1.6% on Monday.
Following last week’s announcement of the potential merger, they surged by almost 20%. Honda’s stock rose 3.8%.
Due to a decline in sales in China, Honda’s net profit decreased by about 20% in the first half of the April–March fiscal year compared to the same period last year.
The consolidation tendency in the sector is reflected in the merger. During a regular briefing on Monday.,
Cabinet Secretary Yoshimasa Hayashi said that Japanese businesses must remain competitive in the rapidly evolving market, but he would not comment on specifics of the automakers’ plans.
“We expect measures needed to survive international competition to be taken as the business environment surrounding.
The automobile industry largely changes, with competitiveness in storage batteries and software becoming increasingly important,” Hayashi said.
