Nissan Considers Partnering with Honda on EVs

Nissan is considering a tie-up with Honda Motor in electric vehicles that could include joint procurement and development, sources at Nissan told Nikkei.

It has been reported that Nissan is considering switching to a common electric vehicle powertrain, or “e-axle,” for which the two automakers might collaborate on the purchase as well as the design and development of a common EV platform. However, Honda’s position on the collaboration is yet unknown, and discussions within Nissan are still in their early phases.

Related: Nissan Unveils Hyper Force Electric Concept as Future GT-R

According to the sources, the two automakers may eventually explore cooperative battery procurement and vehicle development. The goal is to reduce EV costs, as competition has increased with the arrival of Chinese players. Automakers like BYD benefit from the in-house procurement of components such as batteries, which account for a significant portion of the cost of an electric vehicle.

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Electric vehicles account for around 20% of sales in China, and EV growth propelled the country above Japan to become the world’s largest vehicle exporter by volume last year. Contrary to this, Japanese automakers have been slow to shift from hybrids to EVs, which make up just 2% of their home market, and they face the prospect of Chinese electrics making inroads in major markets such as Southeast Asia. The proposed Nissan-Honda partnership aims to use the carmakers’ resources more effectively to better compete on cost.

Related: Honda Reveals New Logo and EV Concepts at CES 2024

Nissan began mass-producing the Leaf EV in 2010, and it now offers three electric variants. Meanwhile, Honda had planned to collaborate with General Motors to create and market an entry-level EV as early as 2027, but the project was reportedly scrapped last year. To catch up, Honda has increased its own EV development.

Source: Nikkei Asia

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