Speculated since March, Japanese automakers Nissan and Honda are making their collaboration official. What can we expect from this partnership and how can it impact electric vehicles in the future for the worldwide electric market?
Nissan and Honda’s Partnership Goals
Nissan and Honda are Japan’s second and third biggest automakers, so why would two direct competitors want a partnership? Software. According to the Japan Times, the goal of the move was to catch up with Chinese competitors who had taken a decisive lead in EVs while Japanese companies concentrated more on hybrid cars. Electric Cars are more computer than motor these days and software is a crucial and ever-changing part of the electric vehicle future.
With this alliance, the two automakers aim to outpace Chinese manufacturers in the Eastern market and beyond. Together their project focus could involve vehicle function software, wireless update software, charging infrastructure updates, supplementary goods, and battery development.
Partnership Timeline
Both Nissan and Honda are staying quiet about in-depth developments, but it’s safe to speculate that since the March announcement, the companies are now settling on the finer details of the agreement. With lower production costs due to the partnership, EV costs to rival Tesla and other aggressive upcoming competitors could translate into higher sales if the lower production costs also translate into lower ticket prices at the dealership.
Ultimately, this partnership is the direct symptom of a worldwide trend of traditional automakers joining to survive and thrive in the EV era. With their resources and minds combined, standardizing vehicle software that’s easy for drivers to learn along with streamlining charging hardware that works with the growing infrastructure of charging stations could transform the electric vehicle market into the dominant fuel type on the road. Whatever happens, we eagerly await to see what will come out of this meeting of the minds.
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