Sony & Honda’s partnership shows need for automotive transformation

Honda and Sony have signed a memorandum of understanding which outlines their venture to collaborate in the development of high value-added battery EVs. The strategic alliance is set to “create a new era of mobility and mobility services”.

This will combine Honda’s expertise in mobility development and vehicle body manufacturing with Sony’s experience in the development and application of imaging, sensing, telecommunication, network and entertainment.

Honda believes the collaboration will “realise a new generation of mobility and services that are closely aligned with users and the environment, and continue to evolve going forward.”

The companies’ convergence marries software and hardware capabilities. Companies such as Audi and Tesla have already launched in-car infotainment systems, demonstrating the promise that a company such as Sony can offer to Honda’s models.

Tesla’s drivable console incorporates Steam gaming, and Audi’s ‘elastic content’ XR offerings for passengers will launch later this year.

Autocar has criticised Tesla for its ‘go-it-alone’ attitude, saying: “Tesla’s agonisingly slow production ramp-up is one big mistake made by automotive newbies. Underestimating the cost of engineering is another – one that Dyson suffered just before it abruptly shut down its electric SUV project in 2019.”

Dyson’s fall was allegedly in its desire to redesign areas of an EV that were already up to scratch. In order to sell a Dyson EV at a profit, its founder, James Dyson, noted that it would need to be marketed as over £150,000.

Though the partnership has not yet publicised its potential offerings, many have paid attention to its announcement which boasts Sony’s imaging and sensing capabilities. Presumptions includes features such as autonomous driving.

A report published by McKinsey found that “software will be what differentiates players in the automotive industry within a few years.”

It continued: “Major technology leaps in autonomous driving (AD), connectivity, electrification, and shared mobility – the ACES megatrends – will transform vehicle electronics and software-architecture requirements over the next ten years (Exhibit 1).

“In this new environment, software features are becoming key buying factors and differentiators.”

It seems that popular opinion dictates that it is no longer an option for automotive manufacturers to ignore digital transformation and the expertise of software specialists. GE Digital, an industrial software company, said:

“The automotive industry is in a state of disruptive transition. Automotive manufacturers are being challenged by fast-changing customer needs, advancing digital technologies, pervasive connectivity, and environmental regulations.

“To capitalise on industry opposition in the face of these disruptions, companies will need to shift from their traditional “disconnected” and “analog” manufacturing methods to a completely connected and digitised factory floor.”