Honda Motor (NYSE:HMC) and Sony Group Corp (NYSE:SONY) officially launched a joint venture yesterday to build and sell electric vehicles (EVs), as the Japanese car maker plays catch up in the race for eco-friendlly mass produced cars.
The newly-established company, Sony Honda Mobility Inc, will "engage in the sale of high-value-added electric vehicles (EVs) and provide services for mobility," according to a joint statement.
The tie-up plans to start selling the cars in 2025 and both companies will invest 5 billion yen ($37.52 million) into the venture
Honda, like bigger rival Toyota Motor (NYSE:TM), has lagged global automakers in the switch to EVs.
And faces increasing pressure from investors to produce cars that are carbon-free and include new technology such as self-driving capabilities.
Currently Honda offers only one EV, the Honda e, but plans to roll out 30 EV models and produce about two million EVs a year by 2030.
Honda announced last year that by 2040 it would sell only battery-electric and hydrogen-fueled vehicles.
Honda is expected to unveil its all-electric Prologue in the US market next year, with the car expected to go 300 miles on a single charge.
Longtime Honda executive, Yasuhide Mizuno, is set to be the chairman and chief executive of the new entity.
"We plan to fully leverage the technological assets the two companies possess in different fields, such as Sony's sensing technology and Honda's original mobility development capabilities, to realise mobility and services that inspire and excite our customers," Mizuno said.
"By bringing together the expertise of both companies, we aim to lead the way in a new era."
Sony unveiled its Vision-S concept car, an EV vehicle, at the Consumer Electronics Show (CES) in 2020, which featured an array of sensors and other technologies.
The tech giant returned to the CES 2022 show with the Vision-S 02 SUV concept, announcing it would put the car into production this year via a new business entity.
Vision-S 02 was presented with all-wheel drive and 536 horsepower, but no details on battery capacity or range were provided.
As a midsize SUV, it will compete with new EVs like the Polestar 3, Chevrolet Equinox EV, and the Ford Motor Company (NYSE:F) Mustang Mach-E.
A partnership between Honda and General Motors Company (NYSE:GM) has also been announced to produce EVs in 2023 and 2024.