Published - October 14, 2022 @ 11:04 PM (EET)

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In a joint venture between Sony Group (NYSE:SONY) and Honda Motor (NYSE:HMC), the companies will target the premium electric vehicle market and aim to deliver their first EVs by 2026.

Sony Honda Mobility plans to take pre-orders for its vehicles in the first half of 2025, while deliveries of its first model are slated to start in North Carolina.

Initially only available in the United States and Japan, sales and personal customization will primarily take place online, said Yasuhide Mizuno, the JVs Chief Executive Officer, in a statement issued Thursday.

While key model details, including EV pricing, battery range, and the manufacturing platform, have not been released, the new company detailed a vision for a vehicle that would function almost like a rolling smartphone, according to representatives.

WHAT HAPPENED

Looking to combine their strengths and catch up to rivals, including Tesla (NASDAQ:TSLA) and China's Xiaomi Corp, the two Japanese firms joined forces this year, building on previous communications about the joint venture.

The two firms, in March 2022, signed a memorandum of understanding centered around a "strategic alliance" in the field of mobility, following which the JV agreement for Sony Honda Mobility was inked in June.

Using Sony's software systems, including its onboard controllers and cloud-based services, SHM hopes to develop a "Level 3 automated drive under limited conditions to enable Level 2+ driver assistance in even more situations such as urban driving."

The additional provision of sensors and other technology will allow drivers to pay more attention to the content and software services that will be available.

"As safe driving technology will continue to evolve and the amount of concentration required to drive will be reduced, we should consider new ways to enjoy and spend time in the cabin space as a whole." - JV President and Executive at Sony, Izumi Kawanishi.

NOW WHAT

Honda will likely manufacture the still-to-be-named EV at one of its plants in Ohio.  

On Thursday, Sony's stock finished down 0.5% as the company hunts for new revenue sources in the midst of recessionary fears. Honda rose 1% on the news.

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