Honda, Nissan plan merger talks to make world’s 3rd-largest carmaker

The merger aims to challenge global electric vehicle (EV) leaders such as Tesla and Chinese EV-makers like BYD, as well as reduce costs and boost their competitiveness.

The combined sales of Honda and Nissan, as well as Mitsubishi Motors, which is Nissan’s partner, would reach around 8 million vehicles annually, rivaling Toyota and Volkswagen in size.

Honda and Nissan had inked a deal in March to start feasibility studies on EV production and software to cut costs and boost competitiveness, with Mitsubishi Motors joining later.

The three firms reportedly said in a recent statement that they are currently “considering various possibilities for future collaboration,” but no decisions have yet been made.