Would-be EV partners Nissan, Honda can't match Tesla's capex firepower

Japanese automakers have steep hill to climb in spending and cash flow

202403015N Nissan Honda

When it comes to investment, Nissan and Honda are well behind both Tesla and China's BYD. (Photo by Yoshiharu Okanishi)

Nikkei staff writers

TOKYO -- One of the biggest factors driving the proposed partnership between Nissan Motor and Honda Motor is their struggle to catch up to younger rivals like Tesla in the speed and scale of investment.

The two automakers have confirmed they are exploring ways to cooperate in EVs and automotive software. But even if Nissan and Honda were to combine all their current EV sales and spending, they would still fall short of their biggest rivals.

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