Finance Network News, March 15th (Editor: Zoe Yi)
According to the report from Japan's public broadcaster NHK on Friday, March 15th, Japanese automakers Honda and Nissan have decided to sign a memorandum of understanding to collaborate comprehensively on electric vehicle operations.
Earlier this week, local media reported the possibility of the two automakers forming an alliance, aimed at establishing a strong Japanese coalition to counter overseas competitors such as industry giant Tesla.
Citing sources from Nissan, local media reported that specific steps of the collaboration might include introducing shared powertrains, joint procurement, and developing common platforms.
Collaborative Efforts
Currently, automakers worldwide are striving to tackle the cost issue of developing electric vehicles. The cost of electric vehicles is significantly higher than that of hybrid models due to expensive batteries and cutting-edge software required for functions like autonomous driving.
Regarding this collaboration, Seiji Sugiura, a senior analyst at Tokai Tokyo Research Institute, stated, "I would say this is a pragmatic move... They could also expand the scope of collaboration to hybrid cars and batteries."
In recent years, facing the dominant positions of Tesla and BYD in the global electric vehicle market, these two Japanese automakers have been intensifying efforts to strengthen their respective electric vehicle businesses. It's worth noting that BYD has a significant cost advantage in cost control as it develops, produces, and sells almost all car components internally.
Nissan's collaboration with its alliance partners Renault and Mitsubishi in the field of electric vehicles is becoming increasingly close. Nissan plans to increase the number of electric vehicle models to 27 by the fiscal year 2030. Additionally, Nissan aims to significantly enhance the next-generation technology of solid-state batteries, which is expected to greatly increase the range of electric vehicles, by the fiscal year 2028.
Last year, Nissan decided to invest in Ampere, a new electric vehicle joint venture established by Renault, to expand its electric vehicle product line. However, Renault canceled the listing plan of the new company in January citing unfavorable market conditions.
In recent years, Honda has been collaborating with Sony Group and General Motors to develop electric vehicles.
Honda stated that by 2040, all new models it produces will either be electric vehicles or fuel cell vehicles.
