Honda and Nissan are closing in on EV integration to keep pace with industry change

Japanese automakers are taking drastic measures to keep up with Tesla and Chinese EV leaders like BYD. Honda and Nissan are now closing EV integration to join services and avoid incoming competition. The tie-up will involve a third Japanese automotive partner.

Honda and Nissan to enter new EV integration

Honda and Nissan have been paving the way for an EV partnership for several months now. In March, the Japanese auto giants announced plans to integrate the new software with other EV technologies.

Nissan CEO Makoto Uchida said the partnership was “important” as the two automakers “face common challenges.” Those challenges, Uchida alluded to, are Tesla and rising EV makers from China like BYD.

In accordance with NikkeiHonda and Nissan are doubling down and will soon announce EV integration as they look to catch up.

Companies are considering doing business under a holding company. Exact details, including ownership, have yet to be determined. However, the two are expected to push Mitsubishi, in which Nissan has a 24% stake, into a new EV partnership.

With combined sales of 8 million, the EV merger will lead to one of the largest automotive groups in the world. Nissan could benefit from Honda's hybrid technology, and Honda could learn something from Nissan, which has years of experience developing EVs after launching the landmark Leaf in 2010.

Electrek's Take

The potential merger of Honda and Nissan EVs shows the growing pressure on automakers dying to keep up with Tesla and other global electric vehicle leaders.

Japanese car manufacturers, including Toyota, Nissan, Honda, and Mitsubishi, have been among the hardest hit by falling prices in China. With the wave of low-cost domestic EV models, Japanese car brands are quickly being pushed out of the Chinese car market, which is considered very important.

BYD's cheapest EV, the Seagull, was China's best-selling car (EV or gas) last month as well. Meanwhile, only five gas-powered models make the top 20 as consumers continue to switch to electric options.

And Japan is not the only country under pressure. Volkswagen, Ford, GM, and many others are finding it difficult to survive in the world's largest EV market.

Will pooling resources help Honda and Nissan keep pace? Let us know your thoughts in the comments below.