GM AND HONDA JOIN HAND TO MAKE FUTURE SELF-DRIVE CARS

Market Expertz   |     October 18, 2018

 

In a deal which has a valuation of more than USD 750 million from the two titans of automakers, GM and Honda earlier in October joined forces to aggressively pursue the self-driving car segment which is estimated to have an autonomous market size of more than 4 million units by the end of 2025. Honda will likely invest a pragmatic amount of USD 2.5 billion in GM for the product which is believed to exhibit resonating wave of adaptation in the auto industry in the near future.

 

Honda and GM have the skillset and some core competencies which they take pride in. For instance, the Japanese manufacturers are believed to be a pioneer of engine designs and the latter has a sterling reputation of large-scale manufacturing capabilities. Joining forces in this current market space finds the right fit for these two automakers that are expected to have a dominating presence in the global auto industry. Our experts have firm belief that agreements and JV’s of this nature are just a beginning of the new revolution which the entire manufacturing industry would likely see within a decade.

 

Mergers and acquisition rates are the highest in the current fiscal year and would likely increase by more than 21 % by the end of 2022. Manufacturers are gradually realizing that in the coming years, sustainability would likely take the form of big forces joining hands combining their distinguishing skills, as the market forces entering the post-2030 era would be significantly aggressive. Under this segment, automakers are also exhibiting aggressive pursuing battery manufacturers to join forces with them in order for better supply chain functionality. Mergers and acquisitions of battery makers by auto tycoons have risen to 18% from 12% during the period of 2015-2017

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