Japanese legacy automakers Nissan and Honda announced Thursday plans to share critical electric vehicle components like batteries and initiate joint research efforts on next-gen software-defined vehicle (SDV) platforms, per the press release.
Japanese rivals to share EV components and AI research
Nissan and Honda’s latest plans follow a memorandum of understanding (MOU) signed on March 15, 2024, to explore strategic partnerships on artificial intelligence and electrification.
On August 1, 2024, the two Japanese automakers inked a new MOU to further solidify the framework of their strategic partnership, “which is being discussed and considered on a broad scope.”
Specifically, Nissan and Honda plan to utilize the same battery technologies and employ similar specifications for electric motors and inverters for electric vehicle axels. The move is apparently part of the Japanese automakers’ efforts to catch up amid the dominance of Tesla and BYD.
In addition, they also plan to have their vehicle lineups, including ICEs and EVS, “mutually complement” each other in key global markets.
“Companies that don’t adapt to the changes cannot survive. If we try to do everything on our own, we cannot catch up.”
Honda Chief Executive Toshihiro Mibe
Plans for SDVs development
According to the announcement, Nissan and Honda aim to design and develop next-gen software-defined electric vehicles to catch up in the rapidly growing market.
They acknowledge that software, including autonomous driving, connectivity, and AI, will “determine the value of vehicles in the future.”
The two Japanese automakers will work on technologies to power next-gen SDV platforms. Over the next year, they expect to complete basic research. They will then “consider the possibility of mass production development” based on the results.
Nissan and Honda omitted to disclose whether the “friendship” would extend to mutual capital ownership. Nonetheless, they believe this strategic alliance will help them achieve economies of scale.
“Speed is the most crucial element, considering our size. In coming together, we will show that one plus one will add up to become more than two.”
Nissan CEO Makoto Uchida
Mitsubishi joins the team
Mitsubishi Motors joined the Nissan-Honda partnership on Thursday. According to the press release, the three Japanese automotive giants signed an MoU “for further intelligence and electrification” of vehicles based on the original Nissan-Honda alliance on March 15.
“Nissan and Hondaʼs discussions on a possible partnership have progressed, and we have decided to participate in this framework.
Collaboration with partners is essential in today’s automotive industry, which is undergoing rapid changes due to technological innovations such as electrification and intelligence. We believe that we can discover new possibilities in a variety of fields through collaboration among the three companies.”
Takao Kato, Representative Executive Officer, President and CEO, Mitsubishi Motors
Mitsubishi shares the perception that speed and size are essential in responding to the rapid shift of the automotive industry toward electrification.
Considering that Japanese automakers remain some of the biggest laggards in the electric vehicle transition, their move to team up is no longer surprising. The Nissan-Honda-Mitsubishi alliance comes as Tesla and Chinese players dominate key global markets, including Japan.
