Summary

Honda and Nissan are reportedly in merger talks to form a single holding company, potentially including Mitsubishi Motors, to create a major auto group.

This move, aimed at competing with Tesla and Chinese EV leaders like BYD, comes amid pressure on Japanese automakers to catch up in the EV market.

Both companies previously announced plans to deepen collaboration on EVs, with Honda committing $65 billion to EV development by 2030.

Analysts note Japan’s focus on hybrids has hindered progress in the growing global EV sector, where demand is rising despite challenges.