Japanese auto giants Nissan and Honda are reportedly discussing a possible merger in a bid to strengthen their competitive position in the electric car sector, according to a media report on Wednesday.
The merger, which would also include Mitsubishi Motors, would make the companies more competitive against Tesla and Chinese electric vehicle makers, Nikkei Asia reported.
Together they would form the world’s third-largest car company, with sales of more than 8 million vehicles, and move closer to Toyota and Volkswagen.
The share price of Nissan – Mitsubishi Motors’ largest shareholder – rose sharply in response to the reported plans.
In March, the automakers announced they would work together to develop electric vehicles and software technologies to reduce costs and improve their competitiveness.
