Honda and Hitachi Automotive joint venture for EV motors

A joint venture to design and manufacture electric vehicle motors has been announced by Honda Motor Company and Hitachi Automotive Systems.

It could help Honda increase electric car production and offer models in countries like India, reports Car & Bike.

The new company will be based at Hitachi Automotive Systems (HAS) in Hitachinaka-shi, Japan, and will also be receiving local government grants. The two Japanese brands are investing about NZ$60.5 million into the new company, with HAS taking a controlling 51% ownership to Honda’s 49%.

The move is a way for Honda to meet an ambitious, self-set target for two-thirds of its sales to be of electrified models by 2025. The target was announced as Honda formed a new Electric Vehicle Development Division in October 2016.

The joint venture will also be advantageous for Honda as it brings in Hitachi Automotive Systems. The latter has decades of auto component manufacturing knowledge and becomes a partner in component manufacturing instead of just a supplier.

Honda also confirms plans to launch two electric vehicles in 2018, although Autocar reports that it is awaiting a response from Honda as to whether these will now be produced via its new co-owned brand.

Honda chief executive officer Takahiro Hachigo says its first electric model will feature “a high-density, lightweight battery pack, integrated heat management and the evolution of energy transfer functions – both to and from the vehicle”, which relate to areas of expertise for HAS.

The car is expected to make its world debut at the Frankfurt motor show this September.