Looking to tap global potential for EV motors, the two companies aim to generate technological synergy and economies of scale that will help strengthen their competitive advantage
07 Feb 2017 | 4354 Views | By Autocar Pro News Desk
Hitachi Automotive Systems and Honda Motor Co have inked an MoU to set up a 51:49% joint venture company for the development, manufacture and sale of motors for electric vehicles (EVs).
With environmental conservation measures and regulations increasing on a global scale, the market for EVs is expected to ...
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Hitachi Automotive Systems and Honda Motor Co have inked an MoU to set up a 51:49% joint venture company for the development, manufacture and sale of motors for electric vehicles (EVs).
With environmental conservation measures and regulations increasing on a global scale, the market for EVs is expected to continue to grow. Looking to tap this global potential, the two companies aim to take the collaboration route between a vehicle manufacturer and supplier to generate technological synergy and economies of scale that will strengthen their competitive advantage and business foundation for the motors which the core of an EV.
According to Hitachi, since it first started selling motors for EVs in 1999, it has been refining its technological and product capabilities to develop high-output, lightweight and compact EV motors. Over the years, the company has delivered a high volume of these motors to vehicle manufacturers in Japan and globally.
Meanwhile, since 1999, when Honda launched its first hybrid car, Insight, the company has focused on expanding its EV line-up as it continues to enhance its technological and production capabilities with respect to the motors that form the core component of EVs.
Subsidiary operations of the new Japan-based JV are planned for the United States and China, each with manufacturing and sales functions. Together with the establishment of these operations, the new company will expand the global supply of motors to demand from Honda and other vehicle manufacturers.
Along with the new JV, Hitachi Automotive Systems will continue to promote its business operations by maintaining the existing business relationships it has with vehicle manufacturers that use its motors. Honda will also continue to focus on the global promotion of EVs by using motors from the new company as well as the motors it currently manufactures itself in Japan.