Nissan, Honda pursue EV collaboration to counter Chinese dominance
Nissan and Honda team up on electric vehicles to counter Chinese dominance in the EV market
Japan's automotive giants Nissan and Honda have announced their intention to explore potential collaboration in the realm of electric vehicles (EVs) to counter the growing dominance of Chinese manufacturers.
At a joint press conference in Tokyo, the CEOs of Nissan Motor and Honda Motor unveiled plans to delve into areas ripe for cooperation.
Japanese automakers catching up in EV race
While the specifics of this non-binding agreement are still being ironed out, both companies affirmed their commitment to jointly developing core technologies while maintaining the distinctiveness of their respective products.
Highlighting the shared goal of accelerating efforts towards "carbon neutrality and zero traffic-accident fatalities," the carmakers outlined their focus on technology within the EV domain.
The global automotive industry is undergoing a swift transition towards EVs, prioritizing advancements in batteries and motors amid growing concerns over emissions and climate change.
Nissan and Honda face domestic challenges
Despite this shift, Japanese automakers, including Nissan and Honda, have lagged behind competitors like Tesla and BYD, predominantly due to their historical success with combustion engine vehicles.
While Toyota Motor, the world’s largest automaker, has advocated for a gradual transition to EVs citing infrastructure challenges, Nissan has emerged as a frontrunner among Japanese manufacturers, particularly with its Leaf model introduced in 2010.
However, both Nissan and Honda have faced difficulties competing with Chinese EV rivals within their domestic market.
Urgency stressed in technological development
Makoto Uchida, Nissan's chief executive, underscored the urgency of rapid technological development, stating, "We don’t have time."
“It is significant that we have reached this agreement based on a mutual understanding that Honda and Nissan face common challenges. We look forward to further discussions and aim to find win-wins for sustainable growth,” he added.
Honda Director and President Toshihiro Mibe said the criteria for their partnership would be “whether the synergy of the technologies and knowledge that our companies have cultivated will enable us to become industry leaders by creating new value for the automotive industry.”
Market reacts positively to potential partnership
Anticipation surrounding the Nissan-Honda collaboration was evident in the significant uptick in both companies' stock prices following reports of the potential deal.
Nissan saw a 3.2% increase, while Honda rose by 1.7%.
Although the agreement currently excludes mutual capital ownership, the executives indicated openness to exploring this possibility in the future.
Source: Newsroom
