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As competition in the electric vehicle market heats up, Japanese automakers are partnering to explore ways to better compete with their Chinese and American peers.
Nissan (OTCPK:NSANY) and Honda (NYSE:HMC) will begin a feasibility study of a strategic partnership in the fields of vehicle electrification and intelligence. The study’s scope includes automotive software platforms, core components related to EVs, and complementary products, the companies said.
“It’s important to prepare for the increasing pace of transformation in mobility in the mid-to-long-term… we reached this agreement based on a mutual understanding that Honda (HMC) and Nissan (OTCPK:NSANY) face common challenges,” said Nissan CEO Makoto Uchida.
“Our study criteria will be whether the synergy of the technologies and knowledge our companies have cultivated will enable us to become industry leaders,” said Honda (HMC) CEO Toshihiro Mibe.
Nissan (OTCPK:NSANY) will also explore a new joint initiative with Mitsubishi (OTCPK:MSBHF) in next-generation-mobility and energy-related services utilizing EVs.
Nissan (OTCPK:NSANY) noted that Japan is facing driver shortages due to a declining population, and difficulties maintaining public transportation services. It expects such regional societal issues to become more challenging.
The automakers’ Japanese-listed shares all gained on Monday: Nissan +4.1%, Mitsubishi +3.4%, Mitsubishi Motors +3.1%, Honda +2.7%. Nikkei 225 (NKY:IND) +2.7%.
Economist Intelligence Unit previously noted that Japanese EV makers’ prospects in 2024 are mixed due to a late start compared to China. “Japan’s automakers have focused on hybrids and hydrogen fuel cells, leaving them struggling to catch up on battery EVs.”
