Honda and Nissan are reportedly in talks to explore a merger in response to increasing competition in the electric vehicle (EV) market, especially in China.
Both automakers have already been collaborating on EV technologies and have faced challenges in maintaining their market share against Chinese players like BYD.
A possible merger could lead to the formation of a single holding company and create one of the largest automotive alliances globally, with combined resources to tackle competition.
Investors have responded positively to the news, indicating optimism towards potential consolidation.