Honda and Sony finalise electric car partnership

Japan’s Sony and Honda Motor have formed a 50/50 joint venture that will start selling electric cars in 2025.

Honda plans to roll out 30 EV models and make some 2 million EVs annually by 2030.

The joint venture, Sony Honda Mobility, will see Honda will build and sell cars, while Sony will add its software and technology.

Each company will invest 5 billion yen ($37.52 million) in the joint venture. 

Yasuhide Mizuno, a senior Honda executive, will serve as the its chairman and CEO, and Izumi Kawanishi, an executive vice president at Sony, will be the president and chief operating officer.

Honda, maker of popular models such as Accord and Civic, is – in tandem with many motor manufacturers – dealing with reduced margins as costs of raw materials have surged and a global chip supply shortage hurts production.

Earlier this year, the company said it would develop a series of lower-priced EVs with General Motors based on a new joint platform, expanding on plans for GM to begin building two electric SUVs for Honda starting in 2024.

Commenting on the announcement of the new company, Toshihiro Mibe, CEO of Honda Motor said: “We are very pleased to have signed a joint venture agreement with Sony, which has strengths in advanced digital technology, and shares our desire to take on new challenges.”

Kenichiro Yoshida, CEO of Sony added: “We are excited to have met a partner, Honda, with extensive global achievements and knowledge, and to sign the joint venture agreement between the two companies.”

“Going forward, we aim to contribute to the evolution of mobility by combining Honda’s cutting-edge environmental and safety technologies, mobility development capabilities, vehicle body manufacturing technology and after-sales service management experience, with our expertise in imaging, sensing, telecommunication, network and entertainment technologies.”