Honda and Nissan expect big benefits from their potential merger to create the world's third-largest auto group but intense competition from China raises questions about whether they can make it work in time.

Talks about a possible merger of Nissan and Honda is the latest reaction as the global auto industry races to electrify prompted by China competition.

Honda CEO Toshihiro Mibe has said the companies need to build up capabilities by 2030 or face being 'beaten,' but analysts question whether they have that much time.

Japanese carmakers Honda and Nissan are reportedly considering a merger — a sign that major global manufacturers are joining forces to compete against their mighty Chinese competitors as the auto world goes electric.

A Honda Motor Co. and Nissan Motor Co. combination could give the two struggling Japanese brands the scale to take on China’s BYD Co., sales figures released Wednesday show.

Analysts questioned the timing of the Honda-Nissan potential deal amid intense competition from Chinese rivals, reported the news agency Reuters.

After kicking off discussions on Monday, Honda and Nissan said they plan to provide more details on Mitsubishi’s involvement around the end of January 2025. The EV merger is expected to be official by August 2026.

The new entity will have a combined market cap of $50 billion. It is expected to have a revenue of $191 billion and profit of $19 billion. Mitsubishi Motors Corp., a smaller player which has Nissan as a majority shareholder,

Honda and Nissan’s potential merger may enable them to compete with China’s BYD, as both brands struggle with declining sales and production. Honda sold 3.43 million cars and Nissan over 3 million in 2024,

Honda Motor Co absorbing Nissan Motor Co could give the two struggling Japanese brands the scale they need to take on China’s BYD Co (比亞迪), sales figures released yesterday showed. Honda, which earlier this week sketched out plans for a deal that amounts to an acquisition of Nissan,