Baku, February 8, AZERTAC
Honda Motor Co Ltd and Hitachi Ltd's auto parts subsidiary plan to form a joint venture to develop, produce and sell motors for electric vehicles (EV), joining forces to better compete in the highly specialized "green" car segment, according to Reuters.
Automakers are increasingly teaming up with parts suppliers to build components for the fast-growing EV segment as a way to expand product line-ups while containing high development costs.
The venture will be established in July with an investment of 5 billion yen ($44.69 million), and will be 51 percent owned by Hitachi Automotive Systems Ltd and 49 percent held by Honda, the two companies said.
The latest joint ventures by Japan's third-biggest automaker are part of its strategy for new-energy cars to comprise two-thirds of its vehicle line-up by 2030 from around 5 percent now.