Nissan considers collaborating with Honda to boost EV production efficiency: Report

Nissan Motor is reportedly contemplating a potential business collaboration with Honda Motor to optimize production costs by jointly working on essential components for electric vehicles (EVs), according to three individuals familiar with the matter at Nissan, reported Reuters.

As per the report, this prospective partnership with Honda holds the promise of enhancing Nissan's scalability, a critical factor for Japanese automakers amidst stiff competition from the likes of China's BYD, Tesla, and other EV manufacturers.

Sources, preferring anonymity due to the confidential nature of the matter, revealed that formal discussions between Nissan and Honda have yet to commence, and the specific areas of collaboration remain undecided.

Moreover, the report mentions that the concept of cooperation arose during discussions between the chief executives of both companies.

In addition to key EV components, Nissan is contemplating collaboration with Honda on "kei car" production—a segment primarily catering to the domestic market, featuring compact, boxy vehicles with lower power specifications compared to standard cars.

While the partnership may extend to international ventures, it could potentially impact Honda's existing collaboration with General Motors, as suggested by two sources privy to the matter.

Initial reports on Nissan's pursuit of a partnership were disclosed by TV Tokyo. However, a spokesperson for Nissan declined to provide any comment, while a spokesperson for Honda stated that the company had no information to share at the moment.

The report added that Honda has revealed that while a potential partnership with Nissan is among several options under consideration, there are numerous agenda items to be addressed before any new collaboration can proceed.

Honda has set ambitious targets, aiming to transition to 100 percent electric and fuel cell vehicle sales by 2040.

Nissan is already engaged in a collaboration with Renault focusing on EVs, primarily within the European market. Notably, the upcoming Nissan electric Micra is anticipated to share a common architecture with the new Renault Five and will be manufactured at the same facility in northern France.

(With inputs from Reuters)