Honda Motor Co. and Nissan Motor Corp. signed a memorandum of understanding to study whether the companies should jointly develop electric vehicles and automotive software, including AI, according to a press release Friday.
“In this period of once-in-a-century transformation in the automotive industry, we will examine the potential for partnership between Nissan and Honda,” said Toshihiro Mibe, president, CEO and representative director of Honda, in a statement. “Our study criteria will be whether the synergy of the technologies and knowledge that our companies have cultivated will enable us to become industry leaders by creating new value for the automotive industry.”
The nonbinding agreement could eventually help the companies develop and launch EVs into the market, as both automakers have fallen behind in recent years. A partnership could also help the Japan-based automakers compete with lower-priced EVs from China, including those manufactured by BYD, the world’s largest EV maker.
“It is important to prepare for the increasing pace of transformation in mobility in the mid-to-long-term, and it is significant that we have reached this agreement based on a mutual understanding that Honda and Nissan face common challenges,” Nissan President and CEO Makoto Uchida said in a statement. “We look forward to further discussions and aim to find win-wins for sustainable growth.”
Nissan, once a leader in EV sales, currently offers just two all-electric models — the Ariya and Leaf. All-electric vehicles made up just 2.3% of Nissan’s U.S. sales last year, trailing every brand that sells EVs except Lexus, Subaru and Toyota, according to Cox Automotive. Nissan sold just 20,616 EVs in 2023, with Leaf sales falling 56.9%.
Honda, on the other hand, does not sell a battery-electric vehicle. However, starting later this year, the automaker plans to sell the Prologue, an all-electric SUV developed with General Motors, in the U.S.
Nissan overhauled its alliance with the Renault Group last year, paving the way for the Japan-based automaker to invest $663 million in Renault’s EV and software division, Ampere. The corporate restructuring also frees Nissan to partner with other automakers, including Honda.
Honda, meanwhile, abandoned its $5 billion plan to co-develop affordable EVs with GM in October. In January, it debuted its new EV lineup at the CES technology show in Las Vegas.
