All data are based on the daily closing price as of July 12, 2024

Honda and Sony to Share EV Platform, Targeting Cost Efficiency and Market Competitiveness

Joint venture aims for 2026 North American launch under Afeela brand with shared development costs
Japan
h 7267.TSE s 6758.TSE Blue Chip 150 OM 60 Anime 20 Games 75 Tech 350 Entertainment 100
Share this on

Honda Motor and Sony Group have announced plans to utilize a common platform for manufacturing electric vehicles (EVs) under both Honda’s 0 Series and the Afeela brand, managed by their joint venture, Sony Honda Mobility. This strategic move aims to reduce development costs and accelerate production timelines amid intensifying competition in the EV market.

The shared platform will first be introduced in North America in 2026. By streamlining the platform design, Honda and Sony seek to mitigate the financial pressures driven by the cost competitiveness of Chinese EV manufacturers and the recent sales slowdown experienced by industry leader Tesla.

An EV platform, essentially a large module to which various vehicle parts are attached, constitutes approximately 10% of an EV’s cost. The design and positioning of components like motors and batteries on this platform are crucial for driving performance. Unlike platforms for gasoline-powered vehicles, EV platforms must be developed from scratch, a process that can exceed 100 billion yen ($621 million).

The 0 Series EVs are expected to have an average price around $40,000, encompassing both mass-market and luxury models. Notably, the high-end Afeela EVs will also use the same platform as the more affordable 0 Series, diverging from the industry norm where different performance requirements typically necessitate distinct platforms.

Afeela will set itself apart through an enhanced in-vehicle experience, including a remote play system that links the EV to the owner’s PlayStation console at home. This innovation highlights the blend of automotive and entertainment expertise from Honda and Sony, positioning the Afeela brand to offer a unique value proposition in the high-end EV market.

 

 

Share this on
Jakota Newsletter

Stay ahead in the JAKOTA stock markets with our roundup of vital insights

Icon scroll to top