Japanese Auto Giants Nissan and Honda to Join Forces in Electric Vehicles

Japanese auto giants Nissan and Honda have announced a strategic partnership to explore collaboration in the electric vehicle sector. This move comes as a response to the dominance of Chinese rivals in the EV market, leaving Japanese companies lagging behind due to their focus on hybrid vehicles. The aim is to leverage their combined technologies and knowledge to create new value and potentially become industry leaders in the automotive sector. Despite the enduring popularity of hybrids in Japan, the shift towards purely electric-powered vehicles has been slow, with only 1.7 percent of cars sold in Japan being electric in 2022. In contrast, EVs accounted for 20 percent of new car sales in China in the same year, highlighting the need for Japanese companies to adapt to the changing market demands. The partnership between Honda and Nissan signals a shift towards collaboration in the face of declining sales and the need to increase profit margins. By joining forces, these once fierce rivals hope to navigate the competitive landscape and stay ahead in the rapidly evolving automotive industry.