Japan’s Sony and Honda Motor are planning to come together to sell electric cars. The companies agreed to form a joint venture that will start selling cars in 2025.
The partnership was first announced in March and was named Sony Honda Mobility.
Each company will invest 5 billion yen ($37.52 million) in the venture. Honda brings its expertise in manufacturing and selling cars in partnership, and Sony has experience in software and technology.
Both companies have made news about electric vehicles this year. Sony announced its plans to foray into the industry for green mobility in January ahead of the CES trade show.
Earlier this year, the company said it would develop a series of lower-priced EVs with General Motors, based on a new joint platform, yexpanding on plans for GM to begin building two electric SUVs for Honda starting in 2024.
Honda has backtracked on Toyota’s move into electric vehicles but said it plans to roll out 30 EV models and make about 2 million EVs annually by 2030.
Yasuhide Mizuno, a senior Honda executive, will serve as president and CEO of the joint venture, and Izumi Kawanashi, executive vice president of Sony, will serve as president and chief operating officer.
Shares in Honda and other Japanese automakers were down between 3% and 5% on Friday as world stocks were set to slide amid fears that sharp interest rate increases by central banks would tip economies into recession.
