Japanese automakers Nissan and Honda have announced plans to collaborate on electric vehicles by sharing components such as batteries and conducting joint research on autonomous driving software. Mitsubishi Motors Corp. has also joined this partnership to enhance their response to the transforming auto industry focused on electrification.
The initial agreement between Nissan Motor Co. and Honda Motor Co. was revealed in March after 100 days of discussions, highlighting the urgent need for adaptation to industry changes. While traditional Japanese automakers excelled in the gasoline engine era, they now face stiff competition in the electric car market from companies like Tesla and BYD from the U.S. and China, respectively.
To achieve economies of scale and address the industry’s challenges, Nissan and Honda will standardize components such as batteries, motors, and inverters for electric vehicles. They aim to make strategic investments in technology and reduce costs through increased production volumes by working together.
Although each company will maintain its distinct model offerings, they will collaborate on resource-sharing in component production and software development to benefit from this partnership. The specifics of how their product lineups will complement each other globally, covering both conventional and electric vehicles, are still being finalized.
Furthermore, Honda and Nissan will collaborate on energy services in Japan, with Mitsubishi joining as a third partner in this initiative. Despite their differing corporate cultures, Honda and Nissan found common ground as they explored working together, recognizing the importance of speed in the ever-evolving industry.
While acknowledging the rapid progress made by companies like BYD, the executives emphasized the potential for collective growth through their partnership. They expressed confidence that combining their strengths will result in more significant advancements and enable them to stay competitive in the market.
Toyota Motor Corp., Japan’s leading automaker, is not part of this collaboration, which aims to leverage shared resources to drive innovation and efficiency in the face of increasing competition in the electric vehicle sector.
