On March 15, Nissan and Honda revealed their partnership to collaborate on developing auto intelligence technologies and electric vehicles, two areas in which Japanese manufacturers have lagged.

At a press conference in Tokyo, the CEOs of both companies announced that they would collaborate on developing “core components” related to EVs, like batteries, automotive software platforms, and other “complementary” products. However, they are still working out the specifics of the non-binding agreement. Yet, they did emphasize that their products would remain distinct while collaborating on key technology.

Makoto Uchida, Nissan’s chief executive, stressed the importance of developing technical solutions quickly, stating, “We’re short on time.” He added that it’s crucial for Honda and Nissan to recognize that they face similar challenges in achieving this agreement.

According to Honda President Toshihiro Mibe, the businesses may forge “synergies” to take on their fierce competitors because they have similar principles.

As worries about emissions and climate change increase, automakers worldwide are quickly moving toward electric vehicles, concentrating on batteries and motors rather than gas engines.

As concerns about emissions and climate change continue to grow, automakers worldwide are rapidly shifting towards EVs, focusing on batteries and motors instead of gas engines. However, Japanese automakers have struggled to develop EVs compared to rivals like BYD of China and Tesla of the United States due to their past success with combustion engine vehicles.

Toyota, the largest carmaker in the world, has often cited the lack of charging infrastructure as a reason why the world is not yet ready for a complete transition to electric vehicles. As a result, the company has promoted hybrid cars, which combine an electric motor with a gas engine.