Japan’s Sony Corp and Honda Motor Co Ltd. said on Friday they are going to team up to develop and sell battery-powered electric vehicles, and said they were open to bringing other partners onboard.
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Joint venture to sell first car in 2025
The companies gave a statement they are going to form a joint venture this year and their first aim is to begin selling the first model in 2025. Honda will be manufacturing this car model and Sony will develop the car’s mobility service platform, they said.
“In the joint venture, we would like to lead the mobility evolution by combining our technology and experience with Honda’s long experience in mobility development and vehicle body manufacturing technologies,” Sony CEO Kenichiro Yoshida said.
The companies have not revealed any financial details regarding the tie-up.
Will the company go public?
On Friday, during a news conference in Tokyo, Honda’s CEO Toshihiro Mibe said that he is not thinking about taking the joint venture public immediately, but he would not dismiss the idea when considering options to grow the new company.
Is the partnership exclusive?
When asked if the partnership between the two companies is exclusive, Mibe said that the both firms are open to bringing other companies onboard. However, the main focus is still on developing the electric vehicle model as of now.
“In the future, we would like to expand our business with an open mindset,” Mibe said. Honda will also continue to develop its own electric vehicle strategy aside from the joint venture.
World’s shift towards electric vehicles
There is a rapid shift towards electric vehicles around the world which is propelled by a global push to slash carbon emissions. The increased demand for electric vehicles is creating opportunities for tech companies to join the auto market as EVs are way easier to manufacture than cars with internal combustion engines.
Competition is rising within the electric vehicle market as well. 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.
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