Elain Brown Auto 06.06.2022 09:Jun AM EDT

Sony and Honda are Creating a New Partnership—A Standalone Business That Makes EVs

Sony's CEO confirmed that the collaboration with Honda would be a standalone business.

As the two firms prepare to work together on the creation of electric vehicles, the chairman of Sony Group has stated that the company's planned joint venture with Honda Motor may host a public share sale at some point in the future.

Both companies reached a collaborative partnership back in March to develop electric vehicles. However, it looks like it is more than just a single partnership. It has now been revealed that the two companies will make it independent.

Sony's Venture To Electric Vehicles

Sony and Honda are working toward the goal of launching their first EVs onto the market in 2025 by establishing a joint venture by the end of this year. While Honda will provide the hardware and safety elements for the vehicle itself, Sony will be responsible for developing the software and entertainment material that can be accessed in the car.

According to Nikkei, Kenichiro Yoshida, the President and CEO of Sony, "We shared the view that it is better to make the joint venture independent, in the long run, rather than putting it under Sony or Honda."

Sony revealed last year that its long-term objective is to bring in one billion new customers for entertainment and other services directly tied to the corporation. The traditional consumer electronics division of the company is being eclipsed by the expansion of the company's entertainment division.

In Sony's most recent fiscal year, games and network services, movies, and music collectively accounted for 51% of the company's overall sales, marking the first time that percentage exceeded 50%.

Unfortunately, the Sony CEO did not give further details about the current state of the partnership. He did, however, state that "I hope to be able to talk a little about it at some point in the near future."

Lastly, Yoshida added that the company's goal is to contribute to the growth of mobility by providing the framework for network functions. He cited the Aibo robotic dog and the PlayStation game console.

Honda's EV Production

As Honda intensifies its push toward net zero carbon emissions, the company is investing a total of 5 trillion yen, which is equivalent to $40 billion, in the development of its electric vehicle technology over the course of the next decade. Honda's budget for developing electric vehicle technology is included in the group's wider budget of 8 trillion yen for research and development.

As reported by Engadget, by the year 2030, the company plans to have introduced a total of 30 different models of electric vehicles and will have produced more than 2 million environmentally friendly vehicles yearly.

It is not yet known how the partnership with Sony fits into those ambitions; nevertheless, Honda is far behind its competitors, and its only pure electric vehicle (EV) that is sold in the west is the specialized Honda E, which is exclusively available in Europe.

The rising demand for less polluting and more sustainable cars comes in response to the growing worries about climate change and has led to a scaling up of production of electric vehicles and hybrid cars by the world's largest automakers.