TOKYO: Nissan Motor Co. is considering collaborating with Honda Motor Co. on vehicle electrification including electric vehicles, it was learned Thursday.

The Japanese automakers seem to be examining the idea of using common core parts for their EVs. The consideration is at its early stage, and it is unclear how willing Honda is.

The collaboration is aimed at enhancing their cost competitiveness to counter U.S. EV giant Tesla Inc. and Chinese automakers. In Japan, EVs account for only about 2 pct of all new vehicle sales.

Nissan, which is in alliance with French automaker Renault SA and Mitsubishi Motors Corp., has announced its investment in Ampere, a new electric vehicle unit of Renault.

Meanwhile, Honda plans to make all automobiles it sells globally either EVs or fuel cell vehicles by 2040. The company has established a joint venture with Sony Group Corp. for EV development.

The possible collaboration between Nissan and Honda may develop into a new force that can compete with industry leader Toyota Motor Corp.

The shift to EVs has progressed rapidly mainly in Europe, the United States and China, but it appears to be slowing as sales to high-income earners, who tend to be sensitive to environmental issues including decarbonization, have run their course.

Both Nissan and Honda need to boost sales in the highly competitive Chinese market urgently. In Southeast Asia, Japanese automakers, which lead in the region, face increased pressure from Chinese rivals that have launched an EV offensive.

JIJI Press