Japanese giants Sony and Honda will join forces to develop electric vehicles, emerging as the latest software-hardware duo to join the fast-growing field of high-tech cars.
The two companies announced on Friday that they “plan to engage in the joint development and sales of high value-added battery electric vehicles” for sale as early as 2025.
They intend to set up a joint venture within this year to combine Honda’s expertise in car manufacturing and after-sales servicing with Sony’s strengths in entertainment and sensors, which are essential for autonomous driving technology. “The [joint venture] is expected to offer a best-in-class in-car user interface where Tesla has been a pioneer,” says Soumen Mandal, a senior research analyst at research firm Counterpoint.
“Once a leader in consumer electronics, Sony has some advanced software and sensor offering in its arsenal which will be used to make a mark in the automotive industry,” says Mandal. He expects Sony to pitch in PlayStation features, “advanced” speakers, sensors and cameras as it helps Honda build cockpits.
Sony indicated at the Consumer Electronics Show in January that its subsidiary, Sony Mobility, would enter EVs as it showcased vehicle prototypes. But the company better known for electronics and entertainment won’t make the actual EVs, notes Mandal. Sony’s decision against manufacturing cars came as a “major hint toward” at least one joint venture, he says.
Joint ventures have formed a trend among developers of EVs and vehicles with autonomous capability and other high-tech features. Venture partners look to each other’s complementary know-how.
The Taiwanese electronics manufacturing giant Foxconn reached deals last year with Los Angeles-based electric vehicle startup Fisker and global auto maker Stellantis to make electric cars in the U.S., for example. Volkswagen and Chinese telecom giant Huawei have talked of creating a joint venture in China for autonomous vehicles.
Last year, autonomous-vehicle developer Cruise and General Motors entered a long-term “strategic relationship” with Microsoft to accelerate “commercialization” of self-driving vehicles, the U.S. software giant Microsoft said.
“To save time and cost, vehicle manufacturers are entering into JVs with software companies that can provide tailored products,” says Mandal. “Both the companies get benefits from the JVs as the auto OEMs can launch products with newer offerings in lesser time and reduced cost [while] software companies get to step into a new market which opens up newer revenue streams.”
The global EV market is tipped to grow in keeping with goals set by governments to cut greenhouse emissions. That market will be worth $957 billion by 2030 at a compound annual growth rate of 24.5% from this year, Market Research Future forecasts.
PlayStation Maker Sony Teams Up With Honda To Enter Fast-Growing Electric Vehicle Market - Forbes
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