Possible Honda-Nissan Alliance Could Produce Cheaper EVs

Electric vehicle affordability continues to be a hot topic. Generous incentives are available, sure, but prices remain significantly higher than those of comparable ICE-powered vehicles. However, several market analysts are predicting that price parity will be reached at some point before the end of the decade.

Now, according to a recent report by Japanese publication Nikkei, it appears that Honda and Nissan are considering an alliance in an effort to launch cheaper EVs and take the fight to Chinese competitors led by BYD. The two companies could be tempted to develop a new EV platform together and share other components.

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Should that scenario play out, the products from the Honda-Nissan joint venture will primarily be aimed at Japanese customers, with other markets to follow. Even North America? That’s a possibility.

In the meantime, Nissan has just slashed prices on its Ariya electric crossover in the U.S. (up to $6,000), but not in Canada. Demand is not exactly the same on both sides of the border. However, we can’t rule out Nissan making other pricing adjustments in the near future.

Over at Honda, the all-new Prologue will begin deliveries this spring with a base MSRP of $59,990. It’s largely derived from the Chevrolet Blazer EV, which last week got rid of a stop-sale order to fix software issues and came away with lowered prices.

It’s too bad that Honda and GM ended plans to co-develop and sell affordable EVs starting in 2027. The Japanese automaker will instead focus on a new global EV series called “Honda 0” which was previewed at CES 2024 in Las Vegas. The first production model—a sedan-type vehicle—will launch in North America in 2026, and others will follow in Japan, Asia, Europe, Africa, the Middle East and South America.