Japanese car firms, Honda and Nissan are plotting to merge to take on the Chinese car industry.
According to reports Honda and Nissan joining forces would become as big as the the world’s biggest car producers, Toyota, Volkswagen, General Motors and Ford.
Honda’s chief executive Toshihiro Mibe has alluded to the fact that the rise of the Chinese car industry was the main reason behind the planned merger.
He added that they needed to fight back by 2030 or risk losing the market to their rivals.
The merger is set to include Mitsubishi allowing all three companies to share resources to battle electric cars which include Tesla.
Information gathered suggests the electric car market has been dominated by Chinese-made electric vehicles.
Mr Mibe told reporters, “There is a rise of Chinese power and emerging forces, and the structure of the automobile industry is changing”.
The growing car industry in China has left many car makers struggling to compete, as the Chinese can boast of lower labor and manufacturing costs.
The Chinese car industry can price their goods lower than foreign counterparts, making them far more attractive to buyers.
