Nissan and Honda are thinking about working together on important electric vehicle (EV) components as well as “kei cars,” which are boxy, less powerful, and mostly intended for the home market.
Nissan Motors, a Japanese auto giant, is contemplating pursuing a commercial collaboration with another Japanese automobile company, Honda Motor. Additionally, a reliable news source stated that the two companies may work together on electric vehicles. In addition to working together on important EV components, Nissan is thinking of developing “kei cars,” which are boxy, less powerful, and mostly intended for the home market.
Nissan Motors’s board of directors came to this decision on Tuesday for the possibility of agreeing with their rival. Potential cooperation with domestic rival Honda will aid Nissan in growing its market share, which is important for Japanese automakers given the fierce competition they face from BYD of China, Tesla, and other electric car manufacturers.
Nissan Motors’s Existing Alliance With Renault Maybe Impacted
A Nissan spokesman stated he was unaware of whether the company’s board had met on Tuesday and declined to comment on the claim. A representative for Honda also stated that the business had nothing further to comment on the findings. Nissan plans to sign a non-binding memorandum of understanding with the automobile company, Honda. Nissan Motors and French carmaker Renault have a long-standing relationship.
Makoto Uchida, Nissan’s chief executive, also stated that they are up against new competitors in addition to the established automakers. These up-and-coming companies are entering the car industry with creative goods and fresh business strategies, hoping to take control by using their unbeatable speed and price competitiveness.
TV Tokyo stated, noting that the areas of collaboration had yet to be determined. The leading business daily said that specific actions might involve the launch of a shared powertrain, cooperative procurement, and platform development, citing numerous Nissan sources. Honda is also aiming to increase its ratio of electric vehicles and fuel cell vehicles to 100% of all sales by 2040.
This leading business daily source also stated that the collaboration between both companies could also extend the battery procurement and help in developing electric vehicles together. Nissan and Renault already collaborate on EVs, primarily in Europe. Constructed in the same northern French facility as the new Renault Five, the next Nissan electric Micra will have the same architecture.
Shifting Landscape of the Nissan-Renault Alliance
Additionally, Nissan has promised to contribute up to 600 million euros ($656.64 million) to Ampere, Renault’s new electric vehicle company. However, to allow for a more flexible relationship, the two companies this year narrowed the scope of their years-long alliance. As a result, Renault has now negotiated agreements with additional partners, including China’s Geely (a leading automobile manufacturer based in Hangzhou, China).
A spokeswoman from Renault stated that under the alliance’s new framework agreement, both partners are free to make strategic decisions outside of common projects together.
Nissan and Honda both lost market shares in China, the world’s largest auto market, last year due to intense rivalry from BYD 002594. SZ and other electric vehicle manufacturers. A report stated that they may reduce domestic output.