Honda & Mitsubishi Form JV to Create Budget BEV Brand

Honda Motor Co., Ltd. HMC and Mitsubishi Corporation MTSUY are set to form a 50/50 joint venture (JV), ALTNA Co., Ltd., in July 2024. The JV is aimed at advancing EV implementation and decarbonization.
Combining Honda's EV and battery technologies with Mitsubishi's power-generation expertise, ALTNA will offer mobility services to reduce EV ownership costs and develop power-supply operations for long-term battery use. ALTNA will handle battery leasing, repurposing and intelligent charging. Seiichi Fukui will become the representative director, president and chief executive of ALTNA.
Per Toshiro Mibe, president of Honda, the company is developing a comprehensive EV value chain encompassing everything from raw material procurement to EV production and battery repurposing and recycling.
The new battery electric vehicle (BEV) version of the N-VAN, which is scheduled to launch in October 2024, will offer a spacious cargo area with a flat, low floor, high ceiling and a large passenger-side opening due to the absence of a center pillar. It serves as a remote power source and is silent to drive.
With a range of 152 miles per charge in WLTC mode, the BEV is suitable for commercial deliveries, charging in 4.5 hours at 6 kW or 30 minutes at 50 kW. It features Honda's battery cooling and heating system to mitigate performance degradation. Four versions, including the e: L4 4-seater and e: Fun for hobbyists, cater to various commercial and private needs.
ALTNA's battery leasing business will begin with the Honda N-VAN EV. ALTNA will own and monitor the leased batteries, ensuring their long-term use and repurposing them for grid storage post-automotive use, thus reducing costs for EV users.
ALTNA will repurpose end-of-life EV batteries for grid stability and renewable energy utilization, ensuring recycling for resource efficiency. Its smart charging plans will optimize electricity costs by avoiding peak hours and leveraging surplus renewable energy, potentially offering V2G services in the future.
In another development, Honda has partnered with Emporia, a leader in energy management technology, to innovate in-home energy management. This collaboration includes a strategic investment by Honda in Emporia and a joint development agreement in North America focusing on smart EV charging and home energy management. Together, the companies aim to deliver cutting-edge solutions that enhance energy efficiency and support Honda's goal of carbon neutrality by 2050.

Zacks Rank & Other Key Picks

HMC currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the auto space are Blue Bird Corporation BLBD, Oshkosh Corporation OSK and American Axle & Manufacturing Holdings, Inc. AXL, each sporting a Zacks Rank #1 (Strong Buy) at present.
The consensus estimate for BLBD's 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. The EPS estimates for 2024 and 2025 have improved 63 cents and 69 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for OSK's 2024 sales and earnings suggests year-over-year growth of 9.86% and 11.92%, respectively. The EPS estimates for 2024 and 2025 have improved 12 cents and 10 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for AXL's 2024 sales and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. The EPS estimates for 2024 have moved up 2 cents in the past 30 days. The EPS estimates for 2025 have moved up 15 cents in the past seven days.

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