Sony Corp. and Honda Motor Co. Ltd. announced on Friday that they will create and sell battery-powered electric vehicles, and are looking for other partners.
Joint venture to sell first car in 2025
According to the companies, they plan to form a joint venture this year, with the first model to be sold in 2025. The car will be manufactured by Honda, and Sony will develop the car’s mobility platform.
According to Sony CEO Kenichiro Yoshida, the joint venture will lead the mobility evolution by combining Sony’s expertise and Honda’s experience in vehicle development and manufacturing.
No financial details about the tie-up have been disclosed by the companies.
Will the company go public?
Honda CEO Toshihiro Mibe said at a news conference in Tokyo on Friday that he does not intend to take the joint venture public right away, but he will also consider the option when considering how to grow the company.
Is the partnership exclusive?
Asked if the partnership between the two Organization is exclusive, Mibe responded that both firms are open to partnering with other firms. For the moment, however, the main focus is on developing electric vehicle models.
Mibe said, “We would like to expand our business with an open mind in the future.” Honda will also continue developing its own electric vehicle strategy in addition to the joint venture.
World’s shift towards electric vehicles
A global push to reduce carbon emissions is driving a rapid shift towards electric vehicles around the world. Since electric vehicles are much easier to manufacture than cars with internal combustion engines, the increased demand for electric vehicles presents opportunities for tech companies to enter the auto market.
The electric vehicle market is also experiencing increased competition. When asked about how the joint venture would hold its own ground when facing challenges from competitors, Mibe said that he wants it to “create a chemical reaction” that exceeds customers’ expectations.
