Sony to start electric car firm as it ?explores a commercial launch?

Sony has revealed plans to start an electric car company, making it the latest electronics manufacturer to target the automotive sector.

The Japanese tech firm is "exploring a commercial launch" of electric vehicles, and will launch a new company, Sony Mobility Inc, in the spring, its chairman and president, Kenichiro Yoshida, told a news conference before the Consumer Electronics Show in the US.

Yoshida on Wednesday presented a prototype sport utility vehicle, the Vision-S 02, which uses the same electric vehicle platform as the previously announced Vision-S 01, a coupe that began testing on public roads in Europe from December 2020.

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

An increasing number of consumer electronics companies have looked into targeting the burgeoning electric car market. The success of the US electric carmaker Tesla has made it into one of the highest-valued companies in the world, and has spurred a host of potential imitators, ranging from traditional automotive companies to startups.

Tokyo-listed shares in Sony Group rose by 3.7% on Wednesday, outperforming flat Japanese benchmark indices.

Electric cars present fewer barriers to entry for potential new entrants because they have fewer moving parts, while autonomous cars (which are still in development) are expected to open a new opportunity to sell entertainment and services to passengers.