Honda and Sony may form a joint venture to produce electric vehicles

“We share the view that it’s better to set up an independent joint venture, in the long run, than just being run by Sony or Honda,” Kenichiro Yoshida, Sony’s president and CEO told Nikkei in an interview on 6/6. When asked about the possibility of a joint venture’s IPO, or the sale of shares to other companies, Yoshida said: “It’s a possibility.”

Sony and Honda plan to form a joint venture later this year with the goal of promoting the first electric vehicle in 2025. Sony will develop software and entertainment content, such as movies and music, to be played on vehicle, while Honda will provide the hardware and safety features for the general model.

Regarding the form and operation model of the joint venture, Yoshida said that the partners are discussing.

Look at the Apple car – a potential challenger – as firms outside the auto industry are entering the electric vehicle space. Yoshida also pointed out that it is possible to compete with Apple, and there may be areas where the two competitors work together.

Last year, Sony stated its long-term goal of attracting one billion customers to entertainment and other services through direct connection. Its entertainment business is growing rapidly, even overshadowing the traditional electronics business. Network services and games, movies and music together accounted for 51 percent of Sony’s total sales last fiscal, surpassing 50 percent for the first time.

Earlier this past March, Honda and Sony signed a memorandum of understanding to form an electric vehicle joint venture. The name has not been determined, and it is not known whether the Sony Vision-S 01 sedan or Vision-S 02 SUV concepts will affect the design of future models of the joint venture.

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