Nissan and Honda Form Strategic Alliance on EVs and AI in Response to Chinese Competitors

Japan's Nissan and Honda have announced a strategic alliance to address the growing demand for electric vehicles (EVs) and artificial intelligence (AI), aiming to catch up with Chinese competitors. The move comes as a response to China's lead in the EV market, where EVs made up as much as 20% of new cars sold in 2022. The alliance aims to strengthen environmental and electrification technologies as well as software development to achieve carbon neutrality and zero traffic-accident fatalities. The feasibility study will encompass EV-related core components, automotive software platforms, and supplementary goods. Both Nissan and Honda recognize the need to combine strengths and explore potential collaboration to become industry leaders and create new value for the automotive industry. This strategic partnership is a response to the transformation in the automobile sector and the shifting landscape of competitive forces. The collaboration is a significant shift for Nissan and Honda, which have historically focused on hybrid vehicles but have fallen behind in the rapidly growing market for fully electric vehicles. The alliance reflects the companies' acknowledgment of the need to adapt to new competitors and innovative market trends.