A potential merger between Honda Motor and Nissan grabbed investor attention as Honda's stocks rose on Monday. Japanese automotive titans Honda and Nissan are working on a potential merger that would create the world's third-largest automaker as the global industry races to adapt to the electric vehicle (EV) revolution.

Japanese automakers Honda and Nissan have announced plans to work toward a merger, forming world’s third-largest automaker by sales.

The Japanese car giants say the proposed merger would give them the scale to better compete on the global market.