Speculation grows over a potential Honda-Nissan merger that could challenge Chinese automakers and impact global vehicle sales.

Honda and Nissan plan to merge as the two Japanese firms seek to fight back against competition from the Chinese car industry. The integration would create one of the world's biggest car producers alongside Toyota,

Honda Motor Co. absorbing Nissan Motor Co. could give the two struggling Japanese brands the scale they need to take on China’s BYD Co., sales figures released Wednesday show.Most Read from BloombergHo Chi Minh City Opens First Metro Line After Years of DelayThe Architects Who Built MiamiNew York’s Congestion Pricing Plan Still Faces Legal HurdlesMexico City to Boost Mobility,

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.

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.

The most important market for both Honda and Nissan is North America. Their core car models are similar, as both companies focus on sports utility vehicles. Nissan does not sell hybrid vehicles (HVs) in North America, and the business integration may enable it to put its HVs into the North American market at an early date.

The two major Japanese automakers are discussing a merger. Here is what to know, from the reasons why they are doing this to how it could impact you.

Facing extreme competitive pressure from the rise of Chinese EV makers, the Nos. 2 and 3 Japanese automakers turn to each other to build strength.

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.

A prerequisite for the merger is for Nissan to complete its business turnaround, Mibe added. Honda and Nissan are the second and third largest automakers in Japan, respectively. I