The Sony Group aims to establish a firm this spring to investigate entering the electric vehicle market, leveraging its strengths in entertainment and sensors to play a larger role in next-generation mobility.
Sony chairman and president Kenichiro Yoshida said at a press conference ahead of the CES technology trade show in Las Vegas that the new firm, Sony Mobility, comes as 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.
Although its once-dominant position in consumer electronics has been eroded by Asian rivals like South Korea’s Samsung Electronics, Sony still has an arsenal of sophisticated technology in areas such as sensors critical to autonomous driving.
It also remains one of the world’s biggest entertainment companies, home to prominent video game and movie franchises. Audio and entertainment systems are increasingly a focus for next-generation vehicles.
Shares in Sony jumped 4.2% in Tokyo after the electric vehicle plans were announced, easily outpacing a flat Nikkei index.
Yoshida unveiled a prototype sport utility vehicle (SUV), the VISION-S 02, which uses the same electric vehicle platform as the previously announced VISION-S 01 coupe that began testing on public roads in Europe from December 2020.
He said the company saw mobility as an “entertainment space” where passengers could choose individual entertainment options and use a 5G internet connection.
Tesla, the world’s most valuable automaker, has upended the global auto sector, with Wall Street investing heavily in electric automobiles. Many investors believe Apple will release its own car in the next few years.
Toyota Motor pledged $70 billion in December to electrify its vehicles by 2030.