Japanese automakers Honda Motor Co. and Nissan Motor Co. are exploring the possibility of a merger, according to reports late Tuesday, in a bid to better compete against foreign electric-vehicle makers like Tesla Inc.

Japanese automakers Nissan and Honda are reportedly considering a merger to make themselves more competitive in the electric vehicle market, particularly in the face of Tesla and Chinese manufacturers’ success.

Japanese carmakers Honda and Nissan are reportedly considering a merger — a sign that major global manufacturers are joining forces to compete against their mighty Chinese competitors as the auto world goes electric.