Nissan and Honda are reportedly considering a partnership to develop affordable electric vehicles (EVs), aiming to counter the increasing competition from Chinese manufacturers such as BYD. The potential partnership may give rise to a novel electric vehicle (EV) platform.
Nissan reportedly mulls tie-up with Honda to bring down electric vehicle prices.
As automakers strive to avert further falling behind electric vehicle (EV) pioneers like BYD, collaborations and partnerships may become increasingly prevalent.
Nissan could seize the opportunity to enter the mass market electric vehicle segment by partnering with Honda to develop cost-effective EV technology.
Nissan may prioritize a partnership with Honda, focusing on collaborative advancements in both batteries and vehicles. Nissan appears poised to transition to a conventional electric vehicle (EV) powertrain, potentially aligning with potential buyers’ expectations. Collaborative design of a shared electric vehicle (EV) platform offers another opportunity.
The aim is to reduce EV prices by emulating the affordable designs of Chinese automakers like BYD, whose cost-effective models pose a competitive threat.
BYD, initially a battery manufacturer, reaps significant benefits from designing and manufacturing nearly all automotive parts in-house.
China’s top electric vehicle official launched a “liberation war” against internal combustion engine cars by drastically reducing EV prices and offering models starting at just $9,700.
Following its Japanese debut a year ago, BYD has swiftly taken up 20% of the country’s electric vehicle import market share as of January. China’s rapid surge in electric vehicle (EV) development propelled the country ahead of Japan, ultimately becoming the world’s leading car exporter in the past year.
Since pioneering the electric vehicle (EV) market with the introduction of the LEAF in 2010, Nissan has struggled to maintain its lead, finding itself increasingly outpaced by competitors. After a rocky start, production of the Nissan Ariya is now running smoothly at Honda’s cutting-edge manufacturing plant.
Nissan has successfully reduced the starting price of its 2024 Ariya model in the US by up to $6,000, with the new base price set at $39,590, as the company aims to recapture a larger market share.
By 2024, Honda’s inaugural electric sport utility vehicle, the Prologue, is slated to debut in the United States with a starting price tag of $47,400. With a $7,500 electric vehicle (EV) tax credit, the starting price of the EV drops to under $40,000. The prologue is founded on General Motors’ Ultium platform, boasting an impressive range of up to 296 miles.
Electrek’s Take
Japanese manufacturers, including Nissan, Honda, and Toyota, are struggling to catch up in the electric vehicle (EV) market due to a slow transition away from hybrid models.
Automakers, eager to avoid further stagnation, are vowing to introduce cutting-edge electric vehicle technology, pledging to slash prices and boost their competitive edge in the market.
Honda had scrapped plans to build affordable electric vehicles with General Motors, citing a “changing business environment.” In an interview, CEO Toshihiro Mibe explained that after a year of consideration, the company decided that this endeavour would be challenging from a business perspective, and thus is suspending development of low-cost EVs for the time being.
Will a partnership between Nissan and other manufacturers help drive down the cost of electric vehicles and make them more competitive in the market? Details surrounding the Nissan and Honda EV partnership are emerging rapidly, so retest for further updates on this innovative collaboration.
