Honda Motor Co., Ltd. and Hitachi Automotive Systems, Ltd. has announced a joint venture that will handle the development, manufacture, and sales of electric vehicle (EV) motors. The operations will be held in Hitachinaka-shi, Ibaraki Prefecture in Japan.
The 2 Japanese companies signed a Memorandum of Understanding in February 2017. It was last March that both firms entered into a joint venture to begin with preparations for the new company that is intended to build electric motors.
Named as Hitachi Automotive Electric Motor Systems, Ltd., the new company has a 5 billion yen (approx. P2.2 billion) capital investment, whereas 2.5 billion yen (approx. P1.1 billion) of it is capital reserve. Furthermore, Honda holds 49% investment rate for the joint venture, while the remaining 51% of share is from Hitachi.
Well, it's quite clear that this signals a future EV fleet expansion from the Japanese automaker. Currently, Honda has the Clarity EV and the NeuV, which was unveiled at the 2017 Consumer Electronic Show.
Both Honda and Hitachi claim that the joint venture will be an answer to the enlarging global demand for EV motors – not only from Honda but from other vehicle manufacturers.