Honda Joins Hands with Hitachi for JV to Manufacture Electric Motors

Honda has joined hands with Hitachi in order to form a joint venture that will specialize in the development and manufacture of electric motors for future vehicles. These engines will be used for both Honda models as well as other automotive OEs.

The joint venture company will be called Hitachi Automotive Electric Motor Systems, with Hitachi having a majority stake of 51 percent, while Honda will have a 49 percent share in the company. The new company has already become operational from Hitachi Automotive Systems current factory in Hitachinaka-shi, Ibaraki Prefecture, Japan.

Together, both companies have invested a total amount of $ 44 million in the new company, which will be engaged in the production of high-spec electric motors. In a bid to control development costs, Many automotive manufacturers are teaming up with component manufacturers to build parts for the EV segment. This demand for EVs is growing at a very fast pace in view of the growing global concern about the impact of automobiles on the environment.

Honda Chief Executive Officer Takahiro Hachigo said that as making motors is capital intensive, instead of manufacturing motors just for Honda, it would be better to make motors in larger volumes for supplying them to a variety of customers. The auto manufacturer is planning to leverage Hitachi’s expertise in volume production.

Emission norms across the world have become more stringent and all automotive manufacturers are currently engaged in the development of alternative powertrains so that vehicles could reduce their use of fossil fuels.