Tuesday , November 21 2017

Honda signs MoU with Hitachi for making electric vehicles

Hitachi has been selling motors for an electric vehicles since 1999.

Honda-RC-E-electric-motorcycle-concept-front-three-quarter
Honda has signed a joint venture with Hitachi which might lead to electric vehicles in the near future.

Honda Motor co Ltd and Tokyo Hitachi Automotive Systems Ltd both have signed a Memorandum of Understanding (MoU) which aims to establish a joint venture company for the development, manufacture and sales of motors for an electric vehicles. While the exact details have not been revealed yet, but this deal may lead to the development of electric motorcycles in the future.

Honda-RC-E-electric-motorcycle-concept-side
Honda had back in 2011 had showcased the RC-E which might enter production form soon.

A new company will be floated under this deal around July 2017 which will have a working capital of JYP 5 billion. Hitachi will have 51 percent stake in the venture while the remaining 49 percent will belongs to Honda. Subsidiaries of this joint venture will be opened in the China and the United States, each with manufacturing and sales function.

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Back in 2011 Honda had showcased an electric motorcycle RC-E concept at the Tokyo Motor Show. The retro-styled motorcycle with an electric heart was fitted in  the quarter litre motorcycle’s body. A new product based on the similar lines can be a way forward for this new joint venture.

In parallel to this efforts of the a new automobile company, Hitachi will continue to promote its business operations by maintaining the business relationships it has with vehicle manufacturers that receive the supply of motors from the company. Honda, on the other hand, will continue to focus on a global promotion of an electric vehicles by using motors from the new company as well as the motors it currently manufactures itself in Japan.

Of course, this means that technology developed from this venture will also go into Honda’s range of electric cars.

With electric motorcycles still in a very nascent stage and will closure of brands like Brammo, this new venture between Honda and Hitachi is a ray of hope.

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