Nissan, Honda Join Forces to Compete in Global EV Market

honda and nissan photo collage
Nissan, Honda Join Forces to Compete in EV MarketManufacturers
  • With strong competition from brands like Tesla and BYD on the horizon, Nissan and Honda are joining forces to have a fighting chance in the EV market.

  • Aimed at cutting development costs, Nissan and Honda are working out the details of the non-binding joint agreement, with the results aimed at the Japanese domestic market and beyond.

  • Honda was at the forefront with the Insight hybrid and Nissan later on with the Leaf EV, but lately both manufacturers have relied on outdated technology and borrowed EV platforms.

After pioneering electrified vehicles years ago, both Nissan and Honda have fallen well behind when it comes to proper battery-electric models. While Nissan's Leaf EV suffers from an old platform and Ariya sales continue at a crawl, Honda isn't doing much better, just releasing its first BEV, the Prologue, earlier this year.


But it wasn't always this way. From the original Nissan Leaf to the hyper-miling special Honda Insight, alternative means of propulsion have long been important to both brands. Now, the rival manufacturers are teaming up to have a better shot at EV success.

2023 nissan leaf
The 2023 (shown here) and 2024 Nissan Leaf continue to use a CHAdeMO-style charging connector.Nissan

Specifically, both manufacturers have issued statements in support of a strategic partnership focused on producing key components for electric vehicles. Joint investments in artificial intelligence have also been proposed, as the Japanese manufacturers prepare to challenge brands like BYD and Tesla.

"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," said Makoto Uchida, President and CEO of Nissan Motor Company.

What kind of challenges is Mr. Uchida talking about? As the brand continues to sell the legacy Leaf, the electric hatchback doesn't really stack up to its modern competitors.

Nissan's flagship EV, the Ariya, is struggling to gain traction as well. With 13,464 deliveries in 2023, last year's pricing scale was largely to blame, with a starting price of $44,580 for a mere 216 miles of range.