Sony looks at adding cars to growth drive

As Google and Apple weigh a move into building cars, Sony is open to a tie-up with a traditional carmaker to capture the automotive market, its chief executive says.

The possibility of rolling out a Sony vehicle is also something that Kazuo Hirai is not ruling out, noting that the advent of electric cars has lowered entry barriers for new players.

“If we fundamentally believe at some point in time that we can make a difference in the automotive space, it’s something that we will look at,” Mr Hirai told the Financial Times.

“We don’t have plans at this point but never say never,” he added.

Technology companies are looking to tap into the rise of smart cars that are connected to the internet and use sensors to assist drivers. Google is working on a self-driving vehicle and Apple has embarked on an automotive project, eyeing vehicles as the “ultimate mobile device”.

Sony’s ambitions to expand its camera sensor sales from smartphones to cars and its aggressive foray into new sectors ranging from real estate to education have sparked questions about whether the Japanese group could also explore producing a car of its own.

“It’s just an extension of the status quo if Sony is looking to further grow its CMOS [complementary metal-oxide semiconductor] sensor and game businesses,” said Eiichi Katayama, head of Japan research at Bank of America Merrill Lynch. “But cars could potentially be a game changer.”

Sony’s technologies — including its lithium-ion battery business and artificial intelligence capability garnered from its robot-making days — would be advantages in the automotive space. The company’s rechargeable batteries are mainly used in smartphones, cameras and other electronic devices but Mr Hirai said cars could be another area to explore.

According to the Sony chief, non-traditional vehicle manufacturers still have much to learn when it comes to creating “emotional value” that connects consumers to cars. When asked about the possibility of a tie-up with a traditional car company, he added: “Absolutely. That’s why I’m saying never say never.”

Nevertheless, Mr Hirai reiterated Sony’s commitment to consumer electronics even as the company reins in its mobile aspirations and spins off divisions including televisions and Walkmans into wholly owned subsidiaries.

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“The consumer business for Sony continues to be a very important pillar of our business. It has been in the past, it is today and it certainly will be in the future,” he said.

At the IFA Consumer Electronics Show in Berlin on Wednesday, Sony unveiled new Walkman devices and the Xperia Z5, its latest flagship smartphone, which has an upgraded autofocus camera and a fingerprint sensor on the power button.

Thirty-six years after its debut, Sony’s Walkman is enjoying a mini-comeback among music lovers with a line-up of gadgets that can play and store what the industry calls “high-resolution audio” files. The format’s proponents say this provides better sound quality, which is compromised in compressed music files for portable devices such as iPhones and iPods — though critics argue that it is hard for many users to distinguish a difference.

With the new Walkman range that comes in five colours Sony is looking to expand the fan base beyond the niche to include the younger generation and female consumers, said Tomoaki Takuma, the company’s chief art director. To make the products more stylish, all 30 of the external components used in the Walkman and its headphones are the same colour.

“We tried not to be too nerdy,” Mr Takuma said.