Top Japanese carmakers Nissan Motor and Honda Motor are understood to be exploring a blockbuster merger, sending shock waves through the global automotive industry as the two rival companies seek to stay competitive on the road to full electrification.

Honda and Nissan are reportedly in discussions about a potential merger between the Japanese automakers, and the rumors do not come as a surprise to industry experts.

Japanese automakers Nissan Motor Corp. and Honda Motor Co. have confirmed that they are discussing closer collaboration but denied reports they have decided on a merger