PlayStation Maker Sony Teams Up With Honda To Enter Fast-Growing Electric Vehicle Market

Japanese giants Sony and Honda will join forces to develop electric vehicles, emerging as the latest software-hardware duo to join the fast-growing field of high-tech cars.

The two companies plan to work together on the development and sale of high value-added battery electric vehicles.

They intend to set up a joint venture within this year to combine Honda's expertise in car manufacturing and after-sales servicing with Sony's strengths in entertainment and sensors.

Sony is once a leader in consumer electronics, but it has some advanced software and sensor offering in its arsenal which will be used to make a mark in the automotive industry. He expects Sony to help Honda build cockpits with features in the PS3.

At the Consumer Electronics Show in January, Sony indicated that its subsidiary, Sony Mobility, would enter EV as it showcased vehicle prototypes. The company better known for electronics and entertainment won't make the actual EV. He says that Sony's decision against manufacturing cars was a major hint towards a joint venture.

The trend of joint ventures among developers of EV and vehicles with high-tech features has formed. Venture partners look at each other.

Los Angeles-based electric vehicle startup Fisker and global auto maker Stellantis signed deals with Taiwanese electronics manufacturing giant Foxconn to make electric cars in the U.S. There are talks of a joint venture between Volkswagen and the Chinese telecom giant.

Microsoft and Cruise entered a long-term relationship last year to accelerate the commercialization of self-driving vehicles.

To save time and cost, vehicle manufacturers are entering into JVs with software companies that can provide tailored products.

The global EV market is expected to grow in line with government goals to cut greenhouse emissions. Market Research Future forecasts that the market will grow at a compound annual growth rate of 24.5% over the next 15 years.