Honda and Nissan are reportedly in talks to merge, with the goal of forming a holding company that may include Mitsubishi, aiming to become one of the world's largest automotive conglomerates. This move is aimed at enhancing their competitiveness in the electric vehicle field and catching up with China's leading position. Both Honda and Nissan have stated that they are exploring cooperation opportunities, but the details have yet to be revealed. Analysts point out that Japanese automakers have been struggling due to their heavy reliance on hybrid technology, which is increasingly being outpaced by electric vehicles. In response, both companies have announced significant investment plans to transition to electric vehicles by 2030 and 2040, respectively. With the growing competition in the electric vehicle market, the merger talks between Honda and Nissan are seen as a strategic move to stay competitive and maintain their market share.