Nissan and Honda Join Forces to Compete with Chinese Electric Cars
Nikkei Asia, one of the leading economic newspapers in Japan, recently reported that Nissan is actively seeking new partners outside the Renault-Nissan-Mitsubishi alliance. Their goal is to minimize research and development costs and introduce affordable electric cars to compete against Chinese electric vehicles.
Nissan’s Struggle and Honda’s Potential Partnership
In the past, Nissan was at the forefront of the electric vehicle revolution with its popular model, the Leaf. However, in recent years, the company has fallen behind in the global electric car race due to financial difficulties and limited freedom to develop electric vehicles, as a result of its alliance with Renault.
According to Nikkei Asia, Nissan has approached Honda to establish a new partnership. This collaboration would mark Honda’s third electric car alliance, following previous partnerships with GM and Sony. These alliances have allowed Honda to leverage GM’s Ultium battery platform and Sony’s expertise in developing multi-segment electric vehicles.
A Focus on Electric Drive Systems and Battery Development
The proposed joint venture between Nissan and Honda would focus on the development of new electric drivetrains for both companies. Furthermore, the collaboration would extend to designing and developing electric vehicle batteries. The ultimate objective is to reduce the cost of future electric cars and compete effectively against the affordable electric cars from China.
Honda has already formed the Afeela joint venture with Sony, which enables Honda to benefit from software and entertainment advancements from its domestic partner. This collaboration positions Honda to stay at the forefront of the electric vehicle industry.
Challenging the Chinese Electric Car Market
In 2023, China surpassed Japan to become the world’s largest exporter of electric vehicles. Its strong foothold in the electric car market has prompted Japanese automakers to adopt a cautious approach towards electric vehicle adoption. However, waiting too long to enter the market would risk losing significant market share to new and emerging competitors.
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