TOKYO -- Major Japanese carmakers Honda Motor and Nissan Motor are aiming to conclude their merger talks in June 2025, local media reported Monday.

The two companies are expected to strike a basic agreement on Monday to open full-fledged talks on a merger, which would form the world's third-largest automaker group by volume after Toyota Motor and Volkswagen AG, Kyodo News reported, citing sources familiar with the matter.

Honda and Nissan, Japan's second- and third-largest automakers by volume, respectively, are considering to operate under a holding company with Mitsubishi Motors, a Nissan partner, the report said.

Sources said the majority of the holding company's internal and outside directors are expected to be nominated by Honda, adding that the president of the holding company is likely to be a Honda-appointed director.

The move is aimed at improving cost competitiveness and making inroads into the electric vehicle market dominated by competitors from the United States and China, it added.

Honda and Nissan agreed in March this year to commence a feasibility study on a strategic partnership in EV production and software technologies to cut costs and improve competitiveness, with Mitsubishi Motors joining the talks in August.