Analysts questioned the timing of the Honda-Nissan potential deal amid intense competition from Chinese rivals, reported the news agency Reuters.

Honda Motor Co. absorbing Nissan Motor Co. could give the two struggling Japanese brands the scale they need to take on China’s BYD Co., sales figures released Wednesday show.Most Read from BloombergHo Chi Minh City Opens First Metro Line After Years of DelayThe Architects Who Built MiamiNew York’s Congestion Pricing Plan Still Faces Legal HurdlesMexico City to Boost Mobility,

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,