Top Japanese carmakers Nissan Motor and Honda Motor are exploring a merger, seeking to stay competitive in the shift to full electrification. The potential tie-up could create the world's third-largest auto group by vehicle sales, with 8 million annual sales, according to Citi. This comes as many auto giants struggle with increased global competition from electric vehicle makers like Tesla and BYD. Reports suggest the domestic peers expect to sign a memorandum of understanding soon.
While a mega-merger could face obstacles, such as political scrutiny in Japan and the unwinding of Nissan's alliance with Renault, analysts see it as a significant development that could allow Nissan and Honda to pool resources, save costs, and develop future technologies
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