Japanese Automakers Plan to Unite Against EV Rivals

In a strategic move to adapt to the evolving automotive industry, Honda Co. and Nissan Motor Corporation are reportedly planning to initiate merger talks, according to Nikkei Asia.

The potential union aims to pool their technological expertise to better compete against electric vehicle (EV) manufacturers like Tesla, led by Elon Musk, and Chinese rival BYD. Sources suggest that the two companies will soon sign a memorandum of understanding to establish a new holding company, with the possibility of inviting Mitsubishi Motors to join the venture.

This development comes amidst growing concerns from the Japanese government, which is reportedly pushing for such mergers to ensure the country's automotive sector remains competitive in the rapidly growing EV market.