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 individuals familiar with the matter at Nissan, reported Reuters.
Both are Japanese automotive giants who excel in combustion engine manufacturing.
Nikkei Asia reported on Thursday that the Nissan Motor Corporation was exploring the possibility of purchasing a common EV powertrain with the Honda Motor Company and developing a shared EV platform.
While Honda is aiming to increase its ratio of electric vehicles and fuel cell vehicles to 100 per cent of all sales by 2040, Nissan already cooperates with Renault on EVs, mainly in Europe.
The next Nissan electric Micra will share the same architecture as the new Renault Five and be built in the same plant in northern France.
It is pertinent to mention here that both Nissan and Honda have struggled to keep up with their Chinese EV rivals in their home market, the world’s largest.
Nissan’s output in China last fell 24 percent to about 793,000 vehicles, dropping below the one million mark for the first time in more than a decade.