TOKYO (Reuters) – Japanese car makers Honda and Nissan have decided to sign a memorandum of understanding on a comprehensive cooperation in their electric vehicle businesses, public broadcaster NHK reported on Friday.

A Nissan spokesperson said the company had no immediate comment on the report. A Honda spokesperson also declined to comment.

The two automakers’ possible tie-up to better compete with Chinese rivals has been reported by Japanese media earlier this week. The collaboration could potentially extend to battery procurement and joint development of electric cars, the Nikkei newspaper has said.

Citing multiple Nissan sources, the Nikkei has reported specific steps could include the introduction of a common powertrain, joint procurement and development of a common platform.

(Reporting by Kantaro Komiya and Satoshi Sugiyama; Editing by Himani Sarkar)