Sony Plans To Enter Electric Vehicle Market As Its Next Big Hit

Japan’s Sony Group Corp is planning to venture into the industry of electric vehicles as it wants to leverage its strengths in the fields of entertainment and sensors. For this purpose, the company plans to launch a new company this spring as it intends to have a greater say in the area of next-generation mobility.

The new company will be named Sony Mobility Inc.

Sony chairman and president Kenichiro Yoshida said at a news conference prior to CES technology trade fair in the United States that the decision by the company was taken at a time when the Japanese tech giant is “exploring a commercial launch” of electric vehicles.

“With our imaging and sensing, cloud, 5G and entertainment technologies combined with our contents mastery, we believe Sony is well positioned as a creative entertainment company to redefine mobility,” he said.

Sony was once amongst the most dominant player in the consumer electronics industry but was dethroned by its Asian rivals such as the South Korean firm Samsung Electronics Co. however, over the years, the Japanese firm has developed an arsenal of sophisticated technology in a range of fields including that of sensors which are critical to the development of autonomous driving technologies.

Sony is still one of the largest entertainment companies in the world and is the owner of prominent video game and movie franchises. For next generation vehicles, audio and entertainment systems are getting increasingly important.

Following the announcement of the company of its plans of venturing into the electric vehicle industry, the stock price of the company in Tokyo surged by 4.2 per cent as it comfortably outpaced a flat Nikkei index.

Yoshida introduced the VISION-S 02, a prototype sport utility vehicle (SUV) that is based on the same electric vehicle architecture as the VISION-S 01 coupe, which started testing on public roads in Europe in December 2020.

He described mobility as a “entertainment environment” where passengers could choose their own entertainment selections and connect to the internet via 5G.

While investors have shown high levels of confidence in companies making electric cars and the electric car maker Tesla has upended the global auto industry to become the most valuable auto company in the world.

Many investors anticipate Apple Inc. launching its own car in the coming years.

Toyota Motor Corp. of Japan pledged $70 billion in December to electrify its vehicles by 2030.

(Adapted from EconomicTimes.com)



Categories: Creativity, Economy & Finance, Entrepreneurship, Strategy, Sustainability

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