However, this move reflects the challenges and helplessness faced by Japanese automakers in the Chinese market, hinting that the former glory of Japanese cars is gradually fading.

For years, Honda and Nissan relied heavily on China's massive sales to maintain their positions among the world's top ten automakers. Honda China once came close to achieving an annual sales milestone of 2 million vehicles, while the Chinese market has long been Nissan's largest single market globally.

Yet, with the rise of Chinese car brands and shifting consumer preferences—particularly the rapid growth of the electric and smart vehicle markets—Honda and Nissan are now encountering unprecedented challenges in China.

Data shows that Honda's global sales in 2023 grew 6% year-over-year to 3.98 million units, but sales in China dropped 10% year-over-year to 1.23 million units, with sales in the first 11 months of 2024 plunging over 30%.

Nissan faces similarly grim prospects. Its global sales in 2023 increased slightly by 5% to 3.37 million units, but Chinese market sales plummeted 24% to 790,000 units, failing to exceed the 1-million-unit threshold for two consecutive years.

In the Chinese market, local brands have risen strongly, and electric smart vehicles have become the new favorites. Although Honda and Nissan have launched their own electric products, they have evidently failed to keep pace with the market.

In China, Nissan is now nearly entirely reliant on a single model, the Sylphy, to sustain its sales. Meanwhile, despite Honda's efforts to roll out exclusive models such as the e:N electric series, it has struggled to reverse its declining performance.

In the face of these difficulties, Honda and Nissan's decision to merge is undoubtedly an attempt to tackle market challenges through resource integration and economies of scale. However, whether this merger can truly save Japanese automakers in the Chinese market remains an open question.

The newly merged entity will face immense pressure from Toyota, as well as intense competition from Chinese domestic brands. In the electric and smart vehicle sector, China has already become the world's largest market and a hub for technological innovation. To succeed in this field, Honda and Nissan must deeply integrate with the Chinese market and accelerate technological advancements and product development.

Furthermore, consolidating production capacity and research capabilities post-merger presents a significant challenge. Both Honda and Nissan suffer from overcapacity in the Chinese market. How effectively the new entity can optimize these resources, avoiding waste and redundant investments, will be a critical issue to address.

For the Chinese market, the Honda-Nissan merger may not bring about significant disruptions. Chinese consumers have grown accustomed to the rapid changes in the automotive industry, and the rise of domestic brands has provided them with more choices.

However, for Japanese automakers, this merger marks an important turning point, signifying the end of their golden era in the Chinese market and the beginning of a far more challenging road ahead.

In summary, while the merger between Honda and Nissan appears to be a strategic response to market challenges, it ultimately reflects the difficulties and compromises faced by Japanese automakers in China. Whether this merger will serve as the starting point for the revival of Japanese cars or merely a desperate measure remains to be seen.

What is certain, however, is that the transformations in the Chinese market and the future trajectory of Japanese automakers will remain focal points for the global automotive industry.