Tokyo | Japanese car giants Honda and Nissan will merge to create the world’s third-largest automotive group by 2026, as Japan’s car makers struggle to keep up in a global car industry increasingly dominated by Chinese electric vehicle makers.

Under the proposed structure, Honda will take the leading role in a new holding company planned for listing in August 2026. The merger would combine Japan’s second and third-largest automakers, with Honda’s current market capitalisation of over $US40 billion ($64 billion) about four times that of Nissan.

Bloomberg