Honda and Nissan will look into partnering on Electric vehicles. The two largest Japanese automakers, Nissan and Honda, said on Friday that they had decided to investigate a strategic alliance in the fields of electric cars and other sectors. According to a joint statement, it will be crucial to boost environmental and electrification technologies as well as software development in order to further speed efforts toward carbon neutrality and zero traffic-accident fatalities.
The two businesses came to this accord because they both think it’s important to combine their skills and look into the possibilities of working together in the future, it continued. According to them, the feasibility study’s purview encompasses EV-related core components, automotive software platforms, and supplementary goods.
Makoto Uchida, the CEO of Nissan, stated that it is critical to get ready for the mid-to-long term, when the mobility landscape will be changing at an accelerating rate. It is also noteworthy that the agreement was struck based on a shared understanding that both Honda and Nissan confront similar difficulties.
The automotive sector was undergoing a once-in-a-century transformation, according to Honda director Toshihiro Mibe.
As per his statement, the research criterion that we will be using will be if the technology and knowledge advantages of our companies when merged will enable us to become market leaders by adding new value to the automotive industry.
Important Key Points:
- A Memorandum of Understanding (MoU) is signed by Honda and Nissan to initiate a feasibility study for strategic cooperation.
- The possible collaboration will center on the joint development of EVs in the future, automotive software systems, and other areas.
- Both businesses are willing to collaborate in Japan as well as any other international vehicle market.
Partnership Between Honda And Nissan :
As the automotive industry electrifies at a faster rate, longtime competitors Honda and Nissan of Japan have chosen to work together. The two businesses signed a memorandum of understanding (MoU) at a joint news conference, wherein they agreed to start a feasibility study for a strategic cooperation for the development of future electric cars (EVs). According to an official statement, the two automakers decided to work together because they felt that “it is necessary to combine their strengths and explore the possibility of future collaboration.”
The official statement emphasizes that “the scope of the feasibility study includes automotive software platforms, core components related to EVs, and complementary products.” Nissan and Honda will assess the co-development of EVs.
“We will examine the potential for partnership between Nissan and Honda during this once-in-a-century transformation of the automotive industry,” stated Toshihiro Mibe, director, president, and representative executive officer of Honda. Our research will focus on whether our companies’ combined technological and knowledge advantages will help us emerge as industry leaders by bringing new value to the automotive sector.
Currently, Nissan and Honda are the only manufacturers offering battery-electric vehicles in the Indian market. The company presently sells just one model, the Magnite sub-compact SUV, while Honda only offers a potent hybrid drivetrain with the City sedan.
Increasing sales of EVs :
In Japan, hybrid vehicles—which mix internal combustion engines and battery power—have proven to be enduringly popular; by 2022, they will make up 40% of sales.
However, Japanese companies are far behind in satisfying the growing demand for fully electric vehicles due to their concentration on hybrids.
In contrast to 5.3 percent in the US and 15% in Western Europe, only 1.7% of automobiles sold in Japan in 2022 were electric.
China became the world’s largest auto exporter last year, surpassing Japan because of the strength of its auto companies. In 2022, EVs made up as much as 20% of new cars sold in China.
According to media sources, Honda and Nissan are even thinking about reducing their production capacity in China as sales decrease.
According to Chris Redl, an auto expert in Japan, the two companies are under pressure to form a partnership since they are not at a large enough size to generate sufficient profit margins.
FAQs
Which company owns Nissan?
Renault Group.
Founded in 1899, Groupe Renault is a global French car manufacturer. The firm used to make trucks, tractors, tanks, buses, coaches, airplanes, aviation engines, and autorail vehicles in addition to a variety of cars and vans.
Is Nissan still owned by Japan?
Nissan and Mitsubishi Motors of Japan have partnered with Renault of France since 1999 to form the Renault-Nissan-Mitsubishi Alliance, with Mitsubishi joining in 2016. Nissan owns the same interest in Renault as of November 2023, while Renault has a 15% voting stake in Nissan.
Who is the CEO of Nissan?
Makoto Uchida holds the positions of president, CEO, representative executive officer, and director of Nissan Motor Co., Ltd. Throughout his career, Uchida held a number of jobs within Nissan and the Alliance.
Who is the CEO of Honda in India?
Mr. Takuya Tsumura
Honda Motor Company of India Ltd.Regards, Mr. Takuya TsumuraAs of April 1, 2022, Mr. Takuya Tsumura serves as the President and CEO of Honda Cars India Ltd.
Which country is Honda from?
Even though Honda was established in 1948 in Hamamatsu, Shizuoka, Japan, the majority of Honda automobiles marketed in the United States are now produced in North America. With the addition of a new manufacturing facility in 2016, Honda increased its U.S. production to 12.
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