Nissan-Honda EV talks: Nissan is contemplating a potential collaboration with Honda in the realm of electric vehicles (EVs), as per Reuters report. This move aims to streamline production costs by sharing crucial components. 

The proposed partnership is seen as a manoeuvre for Japanese automakers like Nissan and Honda amidst fierce competition from players like China's BYD and Tesla in the EV market.

Although formal discussions have yet to commence, the idea of collaboration sprouted from discussions between the companies' chief executives. The scope of the partnership, including potential areas like "kei car" manufacturing for the domestic market, remains undecided. 

However, it could potentially extend to international ventures, although this might impact Honda's existing collaboration with General Motors.

Silence from Nissan, Honda

While Nissan declined to comment on the matter, a Honda spokesperson stated that the company had nothing to add at this point. However, Honda is reportedly exploring various possibilities for partnerships, although several details need sorting before any new tie-ups proceed.

This potential collaboration comes in the backdrop of Honda's goal to transition to 100 per cent electric and fuel cell vehicle sales by 2040. Notably, Nissan already partners with Renault on EVs, primarily in Europe, and has committed major investments in Renault's new electric vehicle entity, Ampere. 

However, the scope of the alliance between Nissan and Renault has been scaled back recently to facilitate a more agile partnership, with Renault pursuing agreements with new partners such as China's Geely.

(With Reuters Inputs)