Japanese carmakers Honda and Nissan, who have been fierce rivals for decades, have decided to team up as electrification of the automotive sector gathers pace. At a joint press conference, the two companies signed a memorandum of understanding (MoU), under which they will begin a feasibility study of a strategic partnership for development of future electric vehicles (EVs). The decision by the two carmakers to join hands is based in the belief that ‘it is necessary to combine their strengths and explore the possibility of future collaboration’, as per an official statement.
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Both Nissan and Honda will evaluate co-development of EVs, with the official statement highlighting the ‘scope of the feasibility study includes automotive software platforms, core components related to EVs, and complementary products’.
Nissan's partnership with Honda is unlikely to change its dynamic with Alliance partners Renault and Mitsubishi.
Makoto Uchida, president and CEO, said, “It is important to prepare for the increasing pace of transformation in mobility in the mid-to-long-term, and 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.”
Toshihiro Mibe, Honda director, president and representative executive officer, said, “In this period of once-in-a-century transformation in the automotive industry, we will examine the potential for partnership between Nissan and Honda. Our study criteria will 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.”
Honda currently has no BEVs on sale in India.
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The executives also told the media that the companies are open to collaborating in their home market as well as in other markets across the globe. This partnership is unlikely to change Nissan’s dynamic with Alliance members Renault and Mitsubishi.
At present, neither Nissan nor Honda has a battery electric vehicle to offer in the Indian market. Honda only has a strong hybrid powertrain available with the City sedan, while Nissan currently retails a single model, the Magnite sub-compact SUV.
