Honda Chief Executive Officer Takahiro Hachigo (right) and his Hitachi Automotive counterpart Hideaki Seki shake hands at a photo session after their news conference in Tokyo, Japan, February 7, 2017. [Photo/Agencies]

Honda Motor Co said on Tuesday it plans to set up a joint venture with Hitachi Automotive Systems Ltd to develop, produce and sell engines for electric vehicles.

The joint venture has plans to manufacture in Japan, the United States and China and will consider using Hitachi's existing plants in those countries, Hitachi Automotive Chief Executive Officer Hideaki Seki said in Tokyo on Tuesday.

The new company will also sell to automakers other than Honda if there's demand, he said.

Establishing a joint venture with Hitachi can save costs, Honda CEO Takahiro Hachigo said.

It will also combine the advantages of both companies to advance the competitiveness of the motors from the joint venture, he said.

Tokyo-based Hitachi Automotive, established in 2009, is a subsidiary of the conglomerate Hitachi Ltd.

Bloomberg