Sony & Honda agree to produce electric cars together

As of last week, Sony and Honda have officially entered into a joint venture agreement to establish a company producing electric cars together. The newly formed company will be named “Sony Honda Mobility Inc.”

In their press release, Honda has stated that “the new company will aim to bring together Honda’s cutting-edge environmental and safety technologies, mobility development capabilities, vehicle body manufacturing technology and after-sales service management experience, with Sony’s expertise in the development and application of imaging, sensing, telecommunication, network and entertainment technologies, to realize a new generation of mobility and services for mobility that are closely aligned with users and the environment, and continue to evolve going forward.”

Perhaps, it can be thought that Honda will bring its car-building experience to be infused with Sony’s software, technology and entertainment experience.

For some time now, Sony has been making their EV ambitions more and more obvious, displaying their VISION-S concept EV at the previous CED conferences.

In each presentation of their concept vehicle, Sony boasted their entertainment and software expertise, but perhaps expressed concern over actually building the sedan. Sony’s CFO made clear that “we will not start making batteries or vehicles ourselves,” and that Sony would rather focus on finding a partnership.

However, we predict that this agreement will not solely benefit Sony, but also Honda. The company has been slow to develop EVs, underestimating the height of the current demand for greener vehicles. Their first mass-market EV – the Prologue EV – won’t come to the West until 2024. Therefore, perhaps this partnership, may be help kick Honda into gear.

Honda’s conservative views to EV production only add to the worries that a stalling on EVs could have dire consequences for the Japanese economy.

In fact, Japan – the world’s second largest car exporter – risks a 14% drop in GDP if they do not ignite a swifter move toward producing green cars, according to a report by the Climate Group.