Sony Group and Honda Motor have agreed to set up a mobility business joint venture (JV) called Sony Honda Mobility with a capital of JPY10bn ($74m).

Sony Honda Mobility will be engaged in selling high-value-added electric vehicles (EVs) and providing services for mobility.

An announcement for the 50:50 JV was first made by the parties in March 2022 through the signing of a memorandum of understanding (MoU).

Honda Motor director, president, representative executive officer, and CEO Toshihiro Mibe said: “We are very pleased to have signed a joint venture agreement with Sony, which has strengths in advanced digital technology, and shares our desire to take on new challenges.

“Since its announcement in March, many people have expressed their expectations for this joint venture. At the new company, we will strive to create new value through the fusion brought about by the combination of our different industries, so please look forward to future developments.”

Sony and Honda Motor aim to establish the new JV this year and start the sale of EVs and services for mobility in 2025.

Honda Motor will bring its environmental and safety technologies, vehicle body manufacturing technology, capabilities in mobility development, and experience in after-sales service management to the JV company.

Sony will contribute its know-how in the development and application of imaging, telecommunication, sensing, network, and entertainment technologies.

Sony Honda Mobility is expected to realise a new generation of mobility as well as services for mobility that are aligned closely with users and the environment, and evolve continuously going forward.

Sony Group representative corporate executive officer, chairman, president, and CEO Kenichiro Yoshida said: “Based on our vision to make the mobility space an emotional one,’ Sony’s initiatives in the mobility business are centered around the three areas of safety, entertainment and adaptability.

“As we continue our learnings in these areas, we are excited to have met a partner, Honda, with extensive global achievements and knowledge, and to sign the joint venture agreement between the two companies.”

The incorporation of Sony Honda Mobility and the start of business are conditional on receipt of relevant regulatory approvals.