The carmakers’ discussion on a merger is the clearest sign yet of how Japan's once seemingly unbeatable auto industry is being reshaped by challenges from Tesla and Chinese rivals.

The Japanese auto giants plan to jointly work on a software platform after losing ground in the transition to electric vehicles

Interest in local Chinese partnerships comes at a time when foreign carmakers are quickly losing share in the world’s biggest car market

While rivals claim to be further ahead in the race to develop the next generation of batteries, Nissan has hinted it’s poised to make the great leap forward sooner

The Japanese automaker now plans for hybrids and fully electric cars to make up 60% of its sales by the end of the decade

Nissan’s Chinese sales dropped by 16% last year while Honda’s were down about 10% in the world’s biggest auto market

The Japanese automaker is joining foreign brands like Tesla and BMW that are expanding their exports of China-made cars to exploit the country's lower manufacturing costs

Nissan Motor Co's new electric crossover has been hampered by problems at its high-tech ‘intelligent factory’

The Japanese auto giant’s outlook was still stable, said S&P, citing its financial discipline and sound balance sheet

Both carmakers gained from a plunge in the yen in October last year, even as a shortage of chips and soaring costs of raw materials squeezed global carmakers

No financial details were disclosed on the valuation of the business on Monday, which some sources have indicated could be up to 10 billion euros