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,

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The merger talks between Honda and Nissan are the latest example of companies trying to respond to the competitive threat from China.

Honda and Nissan confirmed their merger plans at a joint press conference on Monday and aim for a completion date of August 2026.

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.

Japanese automakers Honda and Nissan have announced plans to work toward a merger that would form the world’s third-largest automaker by sales, as the industry undergoes dramatic changes in its transition away from fossil fuels.

Speed limits are usually intended to prevent drivers from going too fast. Occasionally, though, they warn against bumbling along the road too slowly. Honda Motor boss Toshihiro Mibe and his Nissan Motor counterpart Makoto Uchida will need reminding of this if they don’t soon shift out of low gear for the tie-up they proposed on Monday.

Nissan and Honda have said they want to merge. The result would be one of the the world's top-five car companies. Their combined sales are about eight million cars a year, with a turnover of £150bn a year.