Reuters is reporting that Sony Group Corp (SONY) and Honda Motor Co Ltd (HMC) Have set up a joint venture to produce electric vehicles and sell them online in the US and Japan, and are looking to deliver their first vehicle by 2026.

The venture plans to offer the EVs at premium prices, and will include a new software system developed by Sony which will allow them to offer recurring services such as entertainment packages, which will open the door to additional monthly billing revenues.

The joint venture will be named Sony Honda Mobility Inc. Sony will contribute the software systems for the new car, from onboard controllers to cloud-based software designed to interface with entertainment and payment systems. It will also contribute the sensors which will power a Level 3 autonomous drive system, which will let drivers devote more attention to the entertainment content and software services.

Honda will handle selection of the vehicle platform, and details like the battery supplier and brand of motor components, as well as handle manufacturing of the vehicle at one of its plants in Ohio.

According to a Honda spokesperson, the venture would prove vital for Honda to form a “longer-term relationship” with its customers as vehicles transition to become more interconnected with other technologies and services such as entertainment.

The new EV is expected to be released into the Japanese market by the second half of 2026, and a European launch is being considered as well. Orders will most likely open in 2025.