Sony and Honda have announced the signing of a memorandum of understanding (MOU) to build electric vehicles (EVs) together. While Honda is one of the biggest names in the auto industry, Sony has no prior experience with automobiles, barring a few flirtations with concept cars. A partnership between the two could result in the first major competition for Tesla from a standalone EV-maker.

Electric vehicles were once only restricted to sci-fi novels, but have become increasingly mainstream over the past few years. While Tesla is easily one of the most recognized names in the EV industry, it is hardly the only company making electric vehicles. Rivian has also launched its first EVs recently, including the R1T pickup truck and the R1S SUV. Most other traditional automakers are also adding new EV models to their portfolio as part of their plans to move away from traditional combustion engines in the coming years.

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In a press release on Friday, Honda announced that its new EV joint venture with fellow Japanese firm Sony will be established this year. The partnership will not only work towards the development and sale of new electric vehicles, but also develop a new ‘mobility service platform.’ The first vehicle from the the joint venture is expected to hit the market in 2025. According to the press release, Honda will bring the automotive know-how, while Sony will take care of the “imaging, sensing, telecommunication, network, and entertainment technologies.” Although the design and development will be a combined effort, the manufacturing will be taken care of by Honda.

The Details Are Still Sketchy

sony ev concept debuted at ces

As with any announcement about an MoU, the press release is short on details about the upcoming company and the cars it plans to make. However, it does suggest that both are serious about a full-fledged dive into EVs and, if all goes well, the first model might just be three short years away from hitting the market. It’s not immediately clear if the new company will start from scratch with all-new platforms, or if it will work on existing concepts from either company.

Speaking of existing concepts, Sony has already showcased multiple concept EVs over the past couple of years. The first model was the Vision-S concept sedan that was unveiled at CES 2020, while the second one was the recently announced Vision-S SUV. In between, the company released a series of new videos, showing the Vision-S prototype sedan driving on public roads in Austria. It’s not immediately clear if Sony still plans to work on these models as part of the new joint venture, or if they will be discarded following the birth of the new company.