Sony and Honda join forces to sell electric cars by 2025

On Thursday (June 15), Sony and Japan’s Honda Motor officially agreed on a joint venture to sell electric vehicles starting in 2025. In the joint venture, announced back in March and named Sony Honda Mobility, Honda will contribute its expertise in building and selling cars, while Sony will contribute software and crushing technology, the company said in a statement Thursday.

Honda chief Yasuhide Mizuno will serve as chairman and CEO of JV, and Sony’s executive vice president Izumi Kawanishi will serve as chairman and chief operating officer.

Each company will invest 5 billion yen ($37.52 million) in the joint venture.

Earlier this year, the company announced that it will partner with General Motors to develop a series of low-cost electric vehicles based on a new shared platform, with GM scheduled to begin building two electric SUVs for Honda in 2024.

Shares of Honda and other Japanese automakers fell between 3% and 5% on Friday as global stock prices declined on fears that a sharp increase in interest rates by the central bank could lead to a recession.

Honda has been slower to make the transition to electric vehicles than other automakers around the world. The company has been pressured by investors to produce zero-carbon cars and install newer technologies such as autonomous driving.

Honda e, the automaker that offers only one electric vehicle, plans to launch 30 electric vehicles by 2030 and build about 2 million electric vehicles annually.

In the past, Honda, the maker of popular models such as the Accord and Civic, faced lower gross margins as raw material costs skyrocketed and a global shortage of chips hurt production.

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