Today, Sony (NYSE:SONY) and Honda (NYSE:HMC) are making some big waves in the market. Headline news that a Sony and Honda electric vehicle (EV) partnership could bring a new EV competitor to market in short order is somewhat of a surprise. Both Sony and Honda traded down today along with the broader market, despite this news.
This joint venture between the two iconic companies appears to be an interesting match. After all, Sony revealed its prototype EV, the Sony Vision S, way back in 2020. However, many investors had major questions, such as: Which company will actually be behind the manufacturing of this vehicle?
Honda, a global powerhouse in producing passenger vehicles, is certainly a compelling choice. This top auto manufacturer already has production arrangements with General Motors (NYSE:GM) to produce a number of EVs. However, Honda’s focus on developing its own EV production may get a boost from this partnership.
Sony’s creative focus, and ability to build products consumers like, certainly brings a lot to the table. Reportedly, the joint venture will be behind the development and sales of these EVs. Having a partner in this process appears to be something Honda was looking for to accelerate its transition to EVs.
With all that said, let’s dive into a few interesting things investors may want to know about this partnership.
What to Know About the Sony and Honda EV Partnership
- Both companies will be involved in the development and sales process with these “value-added electric vehicles.”
- Where these EVs will be released to market remains uncertain, though there’s speculation that Europe, the U.S. and China could be on the table, in addition to Japan.
- It’s expected the first vehicles will be ready for sale by 2025.
- This rather fast turnaround is based on projections of success for this joint venture.
- Sony brings its leadership in digital sensors and imaging technology to the table.
- Additionally, Honda’s manufacturing expertise and capacity is of utmost importance to this joint venture.
- This EV partnership gives investors two more competitors to consider in this fast-growing space.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.