On Friday, Sony Group Corporation and Honda Motor Co. announced a joint venture to manufacture and sell electric vehicles.
Accordingly, the Japanese companies will establish a new firm this year and begin sales of their first car in 2025.
They did not release the final details of the venture, but the memorandum of understanding stated their intent.
The new business will design, develop and sell battery-powered electric vehicles but not own or operate facilities.
Subsequently, Honda will be responsible for manufacturing the car at its plants. Then, Sony will design and launch the mobility service platform for the vehicle.
The entertainment company is a leading supplier of image sensors for smartphones. It has also taken steps in designing chips for cars.
At the same time, the company is a significant gaming player with its PlayStation division.
Last January, Sony Chief Executive Kenichiro Yoshida announced the creation of Sony Mobility by the spring of 2022.
Correspondingly, he explained that the unit would focus on the commercial launch of electric vehicles.
The holding company wanted to harness its strengths in entertainment and sensors to play a more prominent role in next-generation mobility.
Yoshida further envisions a car model where passengers could choose individual entertainment options and use a 5G internet connection.
Sony has already unveiled the VISION-S 02, a prototype sport utility vehicle. The SUV uses the same electric vehicle platform as the previously announced VISION-S 01.
Meanwhile, Honda is gradually transitioning into becoming an electric car company. The Japanese automobile firm said it would phase out gas-powered vehicles by 2040.
This agreement will help the automaker extend its ambitions to become a key player in next-generation automobiles.
In addition, it inked a joint venture with General Motors to develop new electric vehicles.
Sony, Honda in Electric Vehicle Market
The announcement of electronic giants Sony and Honda is the latest step into the rapidly growing sector.
In recent years, leading global carmakers have increasingly prioritized electric, and hybrid vehicles as the concern about climate change rises.
The rapid shift to embrace electric cars worldwide has opened opportunities for tech companies to join the industry.
In a statement, Sony said that its venture with Honda is a strategic alliance on entering the electric vehicle market.
However, tech companies face challenges in meeting rigorous safety regulations. Only 10.00% of European car sales are EVs, and the United States figure is just 2.00%.
Meanwhile, Honda’s Japanese rivals also invested money and resources into electric vehicles.
For instance, Nissan Motor Co., Renault SA, and Mitsubishi Motors Corp. vowed to offer 35 new EV models by 2030.
Eventually, they unveiled a total investment of $25 billion in the sector.
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