Electronics giant Sony and carmaker Honda are planning to build a joint venture this year to develop and sell electric vehicles, with the first model expected to hit the market in 2025.

The two Japanese companies said they signed a memo of understanding on Friday and is proceeding with negotiations on definitive binding agreements.

The partnership aims to bring together Honda's capabilities in development, production and after-sales service management, with Sony's expertise in imaging, sensing, telecommunication, network, and entertainment technologies, they said.

Honda Chief Executive Toshihiro Mibe said "Although Sony and Honda are companies that share many historical and cultural similarities, our areas of technological expertise are very different.

"Therefore, I believe this alliance which brings together the strengths of our two companies offers great possibilities for the future of mobility."

The two companies said their joint venture will plan, design, develop, and sell "high value-added" EVs, but will not own and operate manufacturing facilities, so Honda is expected to be responsible for manufacturing the first EV model at its vehicle manufacturing plant.

Sony Chief Executive Kenichiro Yoshida said "We intend to build on our vision to 'make the mobility space an emotional one,' and contribute to the evolution of mobility centered around safety, entertainment and adaptability."

Sony will also develop a mobility service platform for the joint venture.

The electronics giant displayed a seven-seat electric SUV at the CES held in Las Vegas earlier this year, which featured 40 sensors and would have Level 4 autonomous driving capabilities.

"We believe Sony is well-positioned as a creative entertainment company to redefine mobility," said Yoshida.

Sony first displayed an electric vehicle model at the CES two years ago, but at that time didn't plan to build cars itself.

Analysts said electric vehicles have fewer parts than gasoline vehicles and rely more on software controls, making it easier for companies that specialize in electronics to get into the business.