By Maki Shiraki and Norihiko Shirouzu

TOKYO (Reuters) -Honda and Nissan are expected on Monday to announce the start of business integration talks, two people familiar with the matter told Reuters, as the carmakers strive to survive a rapidly changing industry landscape.

The two automakers are hosting board meetings on Monday about the talks and will later hold a joint press conference that Nissan's alliance partner Mitsubishi Motors is also expected to attend, the people said.

A merger of the three Japanese brands would create the world's third-largest auto group by vehicle sales after Toyota and Volkswagen, in what would be the biggest industry-reshaping deal since the 2021 formation of Stellantis.

Honda and Nissan have been exploring ways to bolster their partnership, including setting up a joint holding company, as they face growing challenges from Tesla and Chinese rivals, Reuters reported last week.

Honda, Japan's second-biggest automaker, and Nissan, the third-largest, said in March they were considering cooperation on electrification and software development. They agreed to conduct joint research and widened the collaboration to Mitsubishi Motors in August.

Last month, Nissan announced a plan to cut 9,000 jobs and 20% of its global production capacity after its sales plunged in its key China and U.S. markets. Honda also reported a worse-than-expected earnings result due to declining sales in China.

Forms of integration being discussed include Honda supplying hybrid vehicles to Nissan and the joint use of Nissan's car assembly factory in Britain, Kyodo News reported on Saturday.

The companies aim to finalise the integration talks in June 2025, public broadcaster NHK reported.

French automaker Renault, Nissan's largest shareholder, is open in principle to a deal and would examine all the implications of a tie-up, sources have said.