Analysts said the move was aimed at catching up with Chinese competitors who have stolen a march in EVs while Japanese firms have lost ground by focusing more on hybrid vehicles.“We are not competing only with the traditional car makers, but also with new players... with innovative products and new business models” as well as “overwhelming price competitiveness and amazing speed,” said Nissan CEO Makoto Uchida.
Media reports said the partnership could include joint development of a common EV powertrain—a so-called e-axle—and joint procurement of batteries.Honda CEO Toshihiro Mibe said that there was a “once-in-a-century transformation in the automotive industry”. Just 1.7 percent of cars sold in Japan in 2022 were electric—compared to 15 percent in western Europe and 5.3 percent in the United States. EVs accounted for as much as 20 percent of new cars sold in China in 2022, and the strength of Chinese auto firms helped the country overtake Japan as the world’s biggest auto exporter last year.
“Even though they were very fierce rivals historically, it makes more sense for Nissan to get together with a Japanese company like Honda, rather than having these cultural wars with an alliance partner like Renault” of France, he said.
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