Sony and Honda Motor have agreed to form an equal-ownership joint venture that will begin selling electric automobiles in 2025, the companies announced on Friday.
In a statement, Sony Honda Mobility Inc. stated that the newly-formed entity will "engage in the sale of high-value-added electric cars (EVs) and provide services for mobility," according to the press release.
New company chairman and CEO Yasuhide Mizuno is a seasoned Honda executive.
Using Sony's sensor technology and Honda's original mobility development capabilities, "we plan to create mobility and services that delight our customers," Mizuno stated, according to the Wall Street Journal.
It's hoped that by combining the expertise of both Honda and Sony in many domains, including as telephony, image, and entertainment, the two businesses may create mobility goods that combine the best of both worlds.
The Vision-S concept car, an electric vehicle equipped with a variety of sensors and other cutting-edge technologies, made its premiere at the Consumer Electronics Show (CES) in 2020.
As of that time, Sony has not stated that it will proceed with mass-producing the car. For the purpose of testing autonomous car technologies, it was developed.
Sony returned to CES 2022 with the Vision-S 02 SUV concept car, announcing that a company would be formed this year to produce the vehicle.
All-wheel drive and 536 horsepower were on display in the Vision-S 02, but no battery size or range information was provided. It will compete with new EVs like the Polestar 3, Chevrolet Equinox EV, and the Ford Mustang Mach-E in the competitive midsize SUV sector.
Last year, Honda said that it would only sell electric and hydrogen-powered automobiles by the year 2040. Honda's all-electric SUV, the 2024 Prologue, is scheduled to go on sale in the United States in 2023. At this point, the company said it is looking at a potential range of about 300 miles.
General Motors and Nissan have also formed a joint venture to build electrified vehicles in 2023 and 2024.
Sony and Honda said that their new mobility product will be placed into production in 2025, pending regulatory approvals.
Profit margins at Honda, the developer of popular cars like Accord and Civic, have been slashed as raw material costs have risen and the global chip shortage has affected manufacturing.
Earlier this year, the business announced it will work with General Motors (GM.N) on a new joint platform to produce a line of lower-priced electric vehicles.