Nissan, Honda To Explore Partnership In Electric Vehicles

Tokyo, (UrduPoint / Pakistan Point News - 15th Mar, 2024) Japanese auto giants Nissan and Honda said Friday they had agreed to explore a strategic partnership in electric vehicles and other areas.

Analysts said the move was aimed at catching up with Chinese rivals who have stolen a march in EVs while Japanese firms have lost ground by focusing more on hybrid vehicles.

"To further accelerate efforts toward carbon neutrality and zero traffic-accident fatalities, it will be essential to strengthen environmental and electrification technologies as well as software development," a joint statement said.

"The two companies have reached the understanding based on the belief that it is necessary to combine their strengths and explore the possibility of future collaboration," it added.

The scope of the feasibility study includes automotive software platforms, core components related to EVs, and complementary products, they said.

"We are not competing only with the traditional car makers, but also with new players. These emerging brands with innovative products and new business models are making inroads into the auto market and are trying to gain dominance by capitalising on their overwhelming price competitiveness and amazing speed," Nissan chief executive Makoto Uchida told reporters.

"We cannot win the competition as long as we stick to conventional wisdom and traditional approach," he said.

Honda director Toshihiro Mibe said that there was a "once-in-a-century transformation in the automotive industry".

"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," he said.