Japanese electronics giant Sony (SONY) is joining forces with automaker Honda (HMC) to develop and sell electric vehicles, with the first sales scheduled to begin in 2025.
In a joint statement, Sony and Honda said they aim to establish a new company this year focused on electric vehicles. That company will design, develop, and sell electric vehicles but not own or operate manufacturing facilities.
Honda will be responsible for manufacturing the electric vehicles at its existing plants. Sony will develop the mobility service platforms for the vehicles.
Sony is already a key supplier of image sensors for smartphones and is increasingly designing microchips for cars.
Sony said in January that it will set up a company called “Sony Mobility” to explore entry into the electric vehicle market.
Honda has been transitioning to becoming an electric car company. The Japanese automaker said it would phase out gas-powered vehicles by 2040. Honda currently has a joint venture with General Motors (GM) to develop electric vehicles for the Asian market.
The Sony and Honda joint venture marks another example of technology companies jumping into the automotive sector and carmakers looking to boost their technological capabilities.
Consumer electronics giant Apple (AAPL) is reported to be developing a self-driving vehicle, though nothing has been formally announced by the company.
