Talks for a merger of Honda and Nissan have collapsed, according to BBC News.

The carmakers, along with junior partner Mitsubishi, had aimed to collaborate to fight competition, especially in China.

BBC News adds that the companies have, however, said that they would continue their partnership on electric vehicles.

The merger would have created an auto group worth US$60 billion.

The growing electric car market has been increasingly dominated by Chinese manufacturers, such as BYD.