Nissan, the maker of the Leaf and Ariya all-electric vehicles, is reportedly weighing a partnership with Honda that could result in the joint development of a new modular electric axle (e-axle), as well as a shared EV platform, according to Nikkei Asia quoting sources at Nissan.

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The threat of cheap Chinese EVs prompts Japanese companies to explore partnerships

Nissan is reportedly talking to Honda to partner for a new electric axle and potentially a joint electric vehicle platform that could result in several affordable EVs that could compete with Chinese-made rivals. However, Nikkei Asia reported that the discussions are still in the early stages.

Currently, Honda Motor has two EVs on sale in the United States, the Honda Prologue and the Acura ZDX, both of which are the result of the Japanese automaker’s partnership with General Motors.

The two battery-powered crossovers are based on GM’s Ultium platform, the same that’s used for the Chevrolet Blazer EV. The partnership between Honda and the American carmaker was supposed to continue until at least 2027 and result in the debut of several budget-minded EVs, but that plan was scrapped late last year.

Now, Honda might team up with its Japanese counterpart to make cheaper EVs a reality. That said, Nikkei writes that the discussions within Nissan are still in their infancy, while Honda’s stance on the partnership is unclear.

The sources quoted by Nikkei said that the two companies may discuss joint battery procurement and vehicle development so that the cost of future EVs goes down enough to compete with Chinese rivals such as BYD, which saw a big rise in deliveries last year, thanks in no small part to its ability to source components like batteries in-house, bringing down the final price.

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Honda is planning on releasing at least two brand-new EVs starting in 2026 that will draw inspiration from its latest futuristic concepts, while Nissan is working on a couple of U.S.-made EVs. These were supposed to go into production next year, but they were reportedly pushed to 2026 and 2027 respectively.

What’s your take on this potential partnership? Let us know in the comments below.

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