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.

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.

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,

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.

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.

Nissan Motor (NSANY) and Honda Motor (HMC) have officially begun talks to merge by 2026 as Japan’s automakers seek an edge over tough Chinese rivals and Tesla (TSLA).

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.

Two big Japanese automakers — one of which is among Central Ohio's largest employers — could begin merger negotiations as early as next week.