Nissan, Honda Consider Collaboration In EV Sector

Nissan Motor Co. and Honda Motor Co. are exploring the possibility of collaborating in the electric vehicle (EV) business, aiming to establish a formidable domestic alliance to compete against industry leader Toyota Motor Corp.

If the collaboration between Nissan and Honda materializes, it could potentially reshape the landscape of the EV market in Japan and enhance the competitiveness of both companies against their international counterparts. I Photo: Kyodo

Sources close to the matter revealed that Nissan is contemplating joint procurement of parts and sharing major components for their EVs as a strategy to reduce costs, Kyodo News reported.

Discussions within Nissan are in the early stages, and Honda's stance on the potential tie-up remains uncertain.

Both automakers are facing challenges related to the higher costs associated with developing EVs compared to traditional gasoline-powered vehicles, resulting in elevated prices for all-electric cars.

Despite their efforts to strengthen their EV businesses, Nissan and Honda continue to face stiff competition from global rivals such as Tesla Inc. and BYD Co., which currently dominate the global EV market.

Nissan has been increasing collaboration with its alliance partners Renault SA and Mitsubishi Motors Corp. in the EV sector, while Honda, traditionally cautious about partnering with other companies, has pursued EV development with Sony Group Corp. and General Motors Co.

If the collaboration between Nissan and Honda materializes, it could potentially reshape the landscape of the EV market in Japan and enhance the competitiveness of both companies against their international counterparts.

However, the outcome of the discussions and the extent of cooperation between the two automakers remain to be seen.

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