Nissan and Honda are reportedly developing a software-defined electric vehicle (EV), leveraging their combined expertise in automotive and tech to create a revolutionary new mobility solution. Japanese automakers announce landmark collaboration to stay ahead of electric vehicle curve alongside Tesla and other industry leaders driving sustainable mobility forward?
Nissan and Honda have strengthened their electric vehicle (EV) partnership by expanding into shared development of SUVs.
Following confirmation of their partnership to collaborate in March, Nissan and Honda are strengthening their alliance. Japanese automakers have unveiled a pioneering agreement to create cutting-edge software-defined electric vehicles of the next generation.
Nissan and Honda are joining forces to promote the widespread adoption of electric vehicles (EVs), with a specific focus on accelerating the development of software-defined vehicles.
As major players in the automotive industry, both companies concur that software development – encompassing autonomous driving, connectivity, and artificial intelligence – will ultimately determine the value of vehicles.
Nissan and Honda are collaborating to develop technology for their next-generation sustainable drive vehicle (SDV) platforms. Within the ensuing year, they intend to complete preliminary research.
With a focus on the outcomes, Nissan and Honda will likely “pursue advancements in mass manufacturing techniques.” Additionally, both companies may invest in the development of improved battery technologies and e-axles to power new electric vehicles globally.
Mitsubishi announced its entry into a newly formed partnership in a standalone press release. “Nissan’s CEO, Makoto Uchida, highlighted the company’s successful partnership with Mitsubishi Motors, citing their shared expertise and technological know-how.”
Mitsubishi’s CEO, Takao Kato, emphasized that “strategic partnerships are vital in today’s automotive industry,” as electric vehicles (EVs) and innovative technologies continue to rapidly evolve.
Electrek’s Take
As Japanese automakers struggle to catch up with the industry’s rapid transition to electric vehicles, it’s hardly surprising that they’re forming alliances.
As the electric vehicle landscape continues to evolve, a strategic partnership between Nissan, Honda, and Mitsubishi emerges in response to the growing presence of Tesla and Chinese EV manufacturers, such as BYD, in key international markets like Japan, which is increasingly eroding their market share.
China’s BYD makes inroads into Japan’s notoriously closed automotive market. While Japanese brands such as Toyota, Nissan, and Honda have long dominated the automotive market at home, imported luxury vehicles are more often sourced from Germany’s renowned manufacturers, including Porsche, BMW, and Mercedes-Benz.
Despite a 7% decline in overall imports in Japan during the first half of 2024, electric vehicle (EV) imports surged 17%. With BYD setting a precedent, imports surged an impressive 184% year-over-year, mirroring trends reported by the Japan Vehicle Importers Association.
And that’s only one market. Boosting Trade Dynamics (BTD) is gradually expanding its footprint in crucial foreign markets such as Thailand, Indonesia, Australia, Brazil, and Mexico, where it plays a significant role in Japan’s export strategy.
As Toyota’s international sales slumped 5% in June, Japanese rivals Nissan and Honda are strengthening their alliance with the addition of Mitsubishi, signaling a potential shift in the country’s automotive landscape.
Despite a modest decline, Toyota’s gross sales for the first half of 2024 registered a 0.9% drop, primarily driven by significant contractions in key markets such as China, Indonesia, and Thailand. The Japanese automaker attributed the decline to a “challenging market environment” and “heightened competition pressures”.
As BYD persistently cuts costs, the playing field becomes increasingly challenging for global automakers to remain competitive. Chinese electric vehicle (EV) market leader BYD expects the share of three-way partnership manufacturers in the country’s EV sales to decline from around 40% to just 10%.
Japanese automakers are not alone in seeking to rival Tesla and BYD. American auto manufacturers such as Ford have unveiled their own strategic initiatives.
Ford is developing a cost-effective electric vehicle (EV) platform centered around sophisticated software. Ford’s CEO Jim Farley has repeatedly cautioned that Tesla and Chinese electric vehicle manufacturers pose significant competition. Last month, he predicted that many rivals will turn to China for electric vehicle platforms.
