When not occupied with potentially rescuing Fisker from financial ruin, Nissan is contemplating a strategic collaboration with Honda in the realm of electric vehicles (EVs). This revelation comes from a recent report by Nikkei Asia, citing undisclosed sources within Nissan.
The envisioned partnership revolves around the creation of a shared EV powertrain by Nissan and Honda. This collaborative effort would entail the joint procurement of components as well as the collective design and development of an EV platform. However, discussions are said to be in their nascent stages.
Should these talks progress, the focus will likely shift to collective battery procurement and collaborative vehicle development. Nissan’s objective in exploring this potential alliance is to mitigate the escalating costs associated with EV development and production.
This move is prompted by the intensifying competition from Chinese brands, which benefit from internal component sourcing. Notably, companies like BYD manufacture their own batteries, giving them a competitive edge.
In China, EVs currently command approximately 20% of the market share, a figure that propelled the nation to surpass Japan as the world’s largest vehicle exporter by volume last year. In stark contrast, EVs constitute a mere 2% of the Japanese market, indicating a substantial gap in adoption.
A collaborative venture between Nissan and Honda could serve as a catalyst for reducing costs for both brands, thereby stimulating higher sales.
In essence, by joining forces in the EV domain, Nissan and Honda aim to leverage synergies that will not only enhance their competitiveness but also accelerate the pace of EV adoption in Japan, aligning with broader industry trends.