Speculation grows over a potential Honda-Nissan merger that could challenge Chinese automakers and impact global vehicle sales.

The new entity will have a combined market cap of $50 billion. It is expected to have a revenue of $191 billion and profit of $19 billion. Mitsubishi Motors Corp., a smaller player which has Nissan as a majority shareholder,

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, Volkswagen, General Motors and Ford.