Honda and Hitachi to invest in EV company

Honda and Hitachi Automotive Systems (HAS) have established a new joint venture that will develop, manufacture and sell all-electric vehicles.

According to AutoCar, around £34 million will be invested into the new company, with HAS taking a controlling stake of 51 per cent ownership to Honda’s 49 per cent.

It will produce its own vehicles and also supply other manufacturers with electric vehicle hardware.

This is part of Honda’s aim to meet its self-set target for two-thirds of sales to be of electrified models by 2025.

This target was announced when Honda formed a new electric vehicle development division in October 2016.

Plans have also been confirmed to launch two electric vehicles next year.

Honda CEO Takahiro Hachigo told Autocar earlier this year that the first 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.