Nissan, Honda try to catch up with Tesla, consider EV charging partnership to boost competitiveness – BYD (OTC:BYDDF), BYD (OTC:BYDDY)

Nissan Motor Co., Ltd. NSAN And Honda Motor Co., Ltd. HMC are considering collaboration in the development of automotive software and electric vehicle charging infrastructure to improve their competitiveness in the electric vehicle market.

What happened:The two Japanese automakers are exploring a partnership to jointly develop operating systems and other automotive software, potentially reducing associated costs, Nikkei reported Wednesday.

The initiative aims to help companies catch up in the electric vehicle market, where they are lagging behind competitors such as Tesla Inc TSLA and China BYD Co., Ltd. BYDDF BYDDY.

Software plays a crucial role in enhancing a vehicle’s core functions and can be updated to continuously improve its capabilities. The partnership could also extend to the development of electric vehicle charging infrastructure, a key factor in the electric vehicle market.

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In early March, Nissan and Honda announced that they were considering a comprehensive strategic partnership, which could include cooperation in six areas, including electric vehicle batteries. This potential collaboration in automotive software and electric vehicle charging infrastructure is another step in that direction.

Why is this important?:The potential tie-up between Nissan and Honda comes at a time when Japanese automakers are facing increased competition in the electric vehicle market, particularly from Chinese automakers like BYD. In response, Nissan and Honda have been exploring various strategies to strengthen their EV capabilities.

In March, the two companies entered into a memorandum of understanding for a strategic partnership in vehicle electrification and intelligence, including automotive software platforms and core components related to electric vehicles.

Nissan recently partnered with Chinese tech giants Tencent And Baidu to improve their AI capabilities in China, a crucial market for electric vehicles.

Despite these efforts, Japanese automakers are facing challenges in the electric vehicle market. In March, it was reported that Nissan and Honda were considering cutting production in China due to increased competition from electric vehicle makers like BYD.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote