Honda may consider sharing its hybrid technology with Nissan for a stronger hybrid vehicle portfolio. Both automakers are of Japanese origin. This move comes at a time when demand for hybrid vehicles is increasing, due to the slowdown in the electric vehicle market in the United States, with a 33 per cent drop in sales during January 2026.

Nissan has a limited range of hybrid models, contributing to weaker sales performance. This situation has become more evident as many consumers have shifted their preferences back to hybrid vehicles due to the recent slowdown in the EV demand in the US.

For the global aluminium value-chain 2026 outlook, book our exclusive report “Global ALuminium Industry Outlook 2026"

Honda offers a wider range of EVs, including the Honda Civic Hybrid and the CR-V Hybrid. Both models are equipped with a two-motor hybrid system. The company also has supplied hybrid power units in leading international racing series like Formula 1 (the highest class of open-wheel single-seater racing), showcasing its technical expertise in advanced hybrid technologies.

Nissan offers its exclusive e-power system, which functions as a series hybrid system in which the gasoline engine does not directly power the wheels. Instead, the engine acts as a generator that charges the battery, while an electric motor is responsible for driving the vehicle, providing a driving experience similar to an EV with immediate torque delivery.

This system may not be suitable for larger vehicles and heavier models like the Nissan Frontier; extended highway driving and towing could reduce the efficiency of a series-hybrid setup.

Also read: Inside China’s automotive shift: Aluminium becoming integral to vehicle design with usage nearing 8MT

In contrast, Honda’s hybrid technology allows the gasoline engine to directly support propulsion and is better suited for larger US-market vehicles. For Honda, supplying such systems could also create an additional revenue source.

Currently, Nissan’s grip on the US market is limited. The company intends to introduce a plug-in hybrid version of the Nissan Rogue on the Mitsubishi Outlander PHEV (plug-in hybrid SUV). However, several models in its lineup, like the Nissan Sentra and Nissan Murano, continue to rely exclusively on internal combustion engines.

Don't miss out- Buyers are looking for your products on our B2B platform

Nissan does maintain an electric vehicle presence through the Nissan Leaf, but it discontinued the Nissan Ariya in the US market due to import tariff pressures and intense competition from vehicles such as the Tesla Model Y (all-electric mid-size SUV).

Beyond cooperation in hybrid powertrains, Honda and Nissan have reportedly examined broader areas of collaboration. These include the development of shared in-car software platforms and operating systems, which could help lower research and development costs. Discussions have also addressed autonomous driving technologies.

Nissan has partnered with Wayve, a British artificial intelligence company pioneering embodied AI for autonomous driving, to advance its driver-assistance systems, whereas Honda has primarily focused on in-house development. 

Must read: Key industry individuals share their thoughts on the trending topics

Honda also considered manufacturing pickup trucks at Nissan facilities last summer. Reports indicate that discussions led to advanced stages before logistical differences in production equipment and supply chains delayed the proposal.

Closer cooperation may still be important for both firms to strengthen profitability and compete more effectively with Toyota, which leads the US market with a broad hybrid lineup.