Thursday, April 25, 2024
NewsNissan and Honda Could Partner to Develop More Affordable EVs

Nissan and Honda Could Partner to Develop More Affordable EVs

Nissan wants to partner with Honda to make affordable EVs that will compete with Chinese models.

  • This could allow both companies to compete with Chinese automakers in the lower price brackets.

  • Nissan wants to develop a new platform and powertrain that could be shared with Honda.

  • Honda has yet to comment on this possible partnership.

According to sources within Nissan who have spoken with Nikkei Asia, a partnership with Honda could be on the way in order to compete with affordable Chinese EVs.

At the moment, Chinese automakers are making strides in the affordable EV market because they are launching new models around the world which carry sticker prices that are much lower than anything, Japanese, American, or European automakers are capable of offering.

This has resulted in China becoming the leading automotive exporter in the world for the first-time last year, overtaking Japan.

Speaking of Japan, Chinese automaker BYD accounted for 20% of the country’s EV imports on its own in January, less than a year after having launched its first model there.

In order to prevent Chinese electric vehicles from becoming even more popular in the coming years, Nissan wants to team up with Honda to develop a new platform and powertrains that will be used for affordable EVs.

Honda Saloon concept | Photo: Honda

According to Nikkei Asia, this partnership could allow both companies to work on common battery and vehicle technologies, but it could also be used to leverage additional negotiating power with the suppliers that will manufacture Nissan’s upcoming e-Axle powertrain, which Honda could also use.

Both of these methods should help reduce development and production costs for Honda and Nissan, thus allowing them to sell EVs profitably at a price that could compete with BYD and other Chinese manufacturers.

At the moment, Honda hasn’t commented on this possible partnership, so we don’t know if it views such a decision as favourably as Nissan does.

In any case, both Nissan and Honda will have to accelerate the launch of new electric models if they want to maintain their market share as more and more EVs are added to the market as neither is a strong player in the segment.

Indeed, Nissan’s only EVs are the Ariya, which doesn’t qualify for U.S. tax credits, and the aging Leaf, which will be replaced later in the decade.

Even worse is Honda, which currently has no electric vehicle to offer North American buyers, since its first model, the 2024 Prologue, developed and manufactured by General Motors, has yet to arrive on dealer lots.

Source: Nikkei Asia

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