Tokyo, 18 December 2024 (dpa/MIA) - Japanese auto giants Nissan and Honda are reportedly discussing a possible merger in an effort to bolster their competitiveness in the electric car sector, according to a media report on Wednesday.

The merger, which would also incorporate Mitsubishi Motors, would make the companies more competitive against Tesla and Chinese electric vehicle makers, Nikkei Asia reported.

Together, they would form the world's third-largest car company with sales of more than 8 million vehicles, edging closer to Toyota and Volkswagen.

The share price of Nissan - the largest shareholder in Mitsubishi Motors - rose sharply in response to the reported plans.

In March, the carmakers announced they would work together to develop electric vehicles and software technologies to reduce costs and improve their competitiveness.

Photo: MIA archive