Nissan and Honda may join hands over software, EV charging infrastructure

  • Japan’s third- and second-biggest automakers were looking to jointly develop the operating system that controls cars in a bid to bring down costs
Japan’s third- and second-biggest automakers were looking to jointly develop the operating system that controls cars in a bid to bring down costs (AP)

Japanese automakers Nissan Motor and Honda Motor are considering using standardised automotive software and working together on electric vehicle charging, the Nikkei newspaper said on Thursday, steps that could reduce their costs.

Nissan and Honda said in March that they were considering a strategic partnership on producing EV components as they seek to gain a greater foothold in the global market for battery-powered cars, which is expected to grow over the coming years.

Japan’s third- and second-biggest automakers were looking to jointly develop the operating system that controls cars in a bid to bring down costs, according to Nikkei, which did not say where it got the information.

Nissan and Honda could also work together to boost charging infrastructure to increase their competitiveness in EVs, the Nikkei said, adding they are believed to be considering cooperating in six areas as part of their potential partnership.

They are open to working together in any region, both in Japan and overseas,Nissan CEO Makoto Uchida said in March.

Nissan declined to comment on the Nikkei report but said the companies were exploring various collaborations and they would announce details at an appropriate time. A Honda representative did not respond to a request for comment.

Nissan, which pioneered mass-market EVs with the Leaf in 2010, and Honda face a growing threat in the increasingly fierce global EV market, including from the likes of Tesla and Chinese and South Korean automakers.

Both Japanese automakers have been hit hard in key market China by consumers’ shift to low-priced, software-loaded EVs produced by Chinese brands such as BYD.

Nissan sold just over 50,000 EVs worldwide over the first five months of the year, accounting for about 3.5% of its total worldwide sales of 1.4 million.

First Published Date: 04 Jul 2024, 08:43 AM IST