Sony, Honda team up to develop and sell electric vehicles

Tokyo, March 4 (BNA) Japan’s Sony (6758.T) and Honda Motor (7267.T) said Friday that they will cooperate to develop and sell battery electric vehicles, and said they are open to bringing in other partners.

The companies said in a statement that they will form a joint venture this year and aim to start selling the first model in 2025. Honda will be responsible for manufacturing the first model, while Sony will develop the mobility service platform, they said.

“In the joint venture, we would like to lead the evolution of mobility by combining our technology and expertise with Honda’s long experience in developing mobility and auto body manufacturing technologies,” said Kenichiro Yoshida, CEO of Sony.

Reuters reported that the two companies did not disclose the financial details of the deal.

During a press conference in Tokyo on Friday, Honda CEO Toshihiro Mibe said that while he was not considering bringing the joint venture to the public immediately, he would not dismiss it as among the options for growing the company.

Asked if the partnership between the two companies is exclusive, Mibe said they are open to bringing in other companies while they want to focus on developing an electric car model for the time being.

“Going forward, we would like to expand our business with an open mindset,” said Mibe, adding that Honda will continue to develop its electric vehicle strategy separate from the joint venture.

The announcement comes as the electronics company seeks to bolster its ambitions to become a major player in next-generation cars, while automakers such as Honda are under pressure to make carbon-neutral vehicles as well as vehicles equipped with features beyond traditional transportation.

The rapid shift around the world to embrace electric cars, driven by a global push to cut carbon emissions, is creating opportunities for technology companies to join the auto market because these vehicles are easier to manufacture than cars with internal combustion engines.

At the same time, these technology companies face challenges in meeting strict vehicle safety regulations, and making cars able to withstand sometimes challenging driving conditions. Yoshida in January announced a plan to create a new company, Sony Mobility, saying it was exploring a commercial launch of electric vehicles.

Although its dominant position in consumer electronics has been eroded by Asian competitors such as Samsung Electronics Co (005930.KS) in South Korea, Sony still has an arsenal of cutting-edge technologies in areas such as biosensors for autonomous driving.

The competition in the electric car market is also increasing. Asked how the joint venture might address competitors’ challenges, Mebe said he wanted it to “create a chemical reaction” that would exceed customer expectations.

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