Nissan, Honda consider collaboration on software, charging infrastructure, says Nikkei By Reuters

TOKYO (Reuters) – Japanese automaker Nissan (OTC:) Cars and Honda (NYSE:) automakers are considering using standardized vehicle software and working together to charge electric vehicles, 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 seek to gain a foothold in the global market for battery-powered vehicles, which is expected to grow in the coming years.

Japan’s third- and second-largest automakers were looking to jointly develop a vehicle control system in order to cut costs, according to Nikkei, which did not say where it got the information.

Nissan and Honda may also work together to develop charging infrastructure to increase their competitiveness in EVs, Nikkei said, adding that they are believed to be considering cooperation in six areas as part of their potential partnership.

They are open to working together in any region, in Japan and overseas, Nissan CEO Makoto Uchida said in March.

Nissan and Honda declined to comment on the Nikkei report, but representatives of the two automakers said the companies were exploring various partnerships.

Nissan, which introduced mass-market EVs with the Leaf in 2010, and Honda face a growing threat in the increasingly hot global EV market, which includes the likes of Tesla (NASDAQ: ) and Chinese and South Korean automakers.

Both Japanese automakers have been hit hard in the key Chinese market by a consumer shift to lower-priced, software-loaded EVs produced by Chinese brands like BYD ( SZ: ).

Nissan sold just over 50,000 EVs 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 EVs in the first three months of 2024, accounting for 0.3% of global vehicle sales of around one million during that period.