Indonesian distributor PT Indomobil Sukses Internasional Tbk. (IMAS) acknowledged the ongoing talks between Honda Motor Co. and Nissan Motor Co. about their planned merger. However, IMAS Director Jusak Kertowidjojo clarified that no discussions have yet taken place between Nissan Global and Indomobil regarding the merger’s impact on the local market.

“This information is accurate,” Jusak said on December 24, 2024, as reported by CNBC Indonesia. Despite the merger buzz, he noted there is no certainty about how it will affect Nissan’s operations or sales in Indonesia in the short or long term.

The merger, set to establish a holding company in 2026, aims to create the world’s third-largest automotive group after Toyota and Volkswagen. This includes Honda, Nissan, and Mitsubishi Motors, with the latter’s inclusion bolstering the alliance. Combined, these companies are projected to achieve annual sales of over 8 million vehicles.

Key synergies under the merger include standardizing vehicle platforms, optimizing manufacturing systems, and enhancing supply chains. For example, Honda will provide hybrid vehicles to Nissan, while both companies will share assembly plants in the UK. These strategies are expected to reduce production costs, improve efficiency, and increase profitability.

The merger also aims to strengthen research and development efforts, particularly in software-defined vehicles, and to promote operational cost savings through integrated systems. Moreover, employee exchanges and training programs are planned to prepare a skilled workforce for the future of electric and smart vehicles.

While Indomobil awaits further details, this significant development marks a pivotal moment in the global automotive industry, with potential long-term effects on markets like Indonesia.

CNNINDONESIA