TOKYO (Reuters) -Japanese automakers Nissan (OTC:) Engine and Honda (NYSE:) Motor is considering using standardized car software and collaborating on electric vehicle charging, the newspaper said Thursday, moves that could lower their costs.
Nissan and Honda said in March they were considering a strategic partnership to produce EV components as they look to gain a stronger foothold in the global market for battery-powered cars, which is expected to grow in coming years.
Japan’s third-largest automakers wanted to jointly develop the operating system that controls cars in an effort to reduce costs, Nikkei said, which did not say where it got the information.
Nissan and Honda could also work together to boost charging infrastructure to boost their competitiveness in electric vehicles, the Nikkei said, adding that they are likely to consider working together in six areas as part of their potential partnership.
They are open to cooperation in any region, both in Japan and abroad, Nissan CEO Makoto Uchida said in March.
Nissan and Honda declined to comment on the Nikkei report, but representatives from both automakers said the companies were exploring various collaborations.
Nissan, which pioneered mass-market electric cars with the Leaf in 2010, and Honda face a growing threat in the increasingly fierce global EV market, including from Tesla (NASDAQ:) and Chinese and South Korean car manufacturers.
Both Japanese automakers have been hit hard in the key Chinese market by consumers’ shift to low-priced, software-loaded electric vehicles from Chinese brands like BYD (SZ:).
Nissan sold just over 50,000 electric vehicles worldwide in the first five months of the year, accounting for 3.5% of total global sales of 1.4 million.
Honda sold 3,190 electric vehicles in the first three months of 2024, accounting for 0.3% of global retail sales of nearly 1 million vehicles in that period.
