Japanese archrivals Honda and Nissan are exploring a strategic relationship to develop and innovate electric vehicles for the global market. Both manufacturers are currently facing challenges to maintain their relevance in the Indian market. Honda made a bold move last year with the launch of the Honda Elevate, which also won the TopGear India Car of the Year Award. Honda also exports Elevate to the Japanese market as WR-V. Nissan, on the other hand, revived itself in India with the launch of Magnite in 2020. However, the competition has gone on to become stiff ever since then, and Nissan has not brought any notable new launches, thus struggling to mark its dominance in the Indian market.
Brand strategies must adapt and evolve to stay relevant in these changing times. To remain competitive, businesses need to be proactive in updating and innovating their approach. By doing so, they can ensure they stay ahead of the curve and thrive in the future. In the wake of new EV growth, Nissan and Honda have signed the MoU to explore the future development of EVs and software technology. Nissan is also planning to develop an entry-level hatchback based on the CMF-AEV platform, which is expected to be launched in the coming years.
"We cannot win the competition as long as we stick to conventional wisdom and a traditional approach. Emerging players are very aggressive and are making inroads at incredible speed.It is important to prepare for the increasing pace of transformation in mobility in the mid-to-long-term, and it is significant that we have reached this agreement based on a mutual understanding that Honda and Nissan face common challenges. We look forward to further discussions and aim to find win-wins for sustainable growth," said Nissan CEO Makoto Uchida.
Toshihiro Mibe, Honda director, president and representative executive officer, said: "In this period of once-in-a-century transformation in the automotive industry, we will examine the potential for partnership between Nissan and Honda. Our study criteria will be whether the synergy of the technologies and knowledge that our companies have cultivated will enable us to become industry leaders by creating new value for the automotive industry."
