Japanese titans Honda and Nissan are considering a partnership to reduce the cost of developing electric cars and advanced driver assistance technologies.

The two companies have signed a memorandum of understanding and will soon begin investigating areas where they can most effectively cut costs through collaboration. This includes the joint procurement of key components to exploit economies of scale.

They added in a joint statement that any deal will primarily concern EV parts and software platforms and it may “further accelerate efforts toward carbon neutrality and zero traffic-accident fatalities”.

Nissan president and CEO Makoto Uchida said “Honda and Nissan face common challenges” and they “aim to find win-wins for sustainable growth”.

The prospective partnership comes as Japan’s car industry bids to ward off a new breed of fast-moving companies dedicated to electric cars, such as BYD and Tesla.

Uchida is quoted by the Reuters news agency as telling a press conference that “emerging players are very aggressive and are making inroads at incredible speed”.

He added: “We cannot win the competition as long as we stick to conventional wisdom and a traditional approach.”

Honda CEO Toshihiro Mibe highlighted the urgency of developing cost-cutting strategies, telling journalists: “We are strapped for time and need to be speedy. In 2030 to be in a good position, we need a decision now.”

The Japanese brands’ sentiments mirror those of Renault Group boss Luca de Meo. Writing exclusively for Autocar, he recently called on Europe’s car industry to organise in the face of the threat posed by American and Chinese makers.

De Meo said: “As an antidote to the proliferation of diktats from the various authorities, let’s establish a one-stop shop for mobility and automotive regulations. Let’s foster the emergence of a framework of stable rules and standards across Europe, following the example of what the Chinese have successfully achieved.

“Let’s put in place all the conditions for the emergence of structural projects and allow European champions to emerge in key technologies. Europe did it in the past: it is called Airbus.”