Nissan and Honda announced Monday a partnership to jointly develop computer parts and software for vehicles slated for release in fiscal year 2029. The collaboration will involve sharing standardized components in core electronic control units (ECUs) and software.
Discussions between the two automakers regarding cooperation on electric vehicles and auto intelligence technology began in 2024. This latest agreement specifically focuses on what are known as software-defined vehicles, a category where functions and features can be updated and controlled via software, rather than relying solely on hardware mechanics. Such vehicles could include electric models, though the announcement did not specify EVs or particular car models.
The automotive industry is facing intensified global competition, driven by advancements in areas like automated driving and zero-emission technologies. Vehicles are increasingly characterized by their electronic components and software, moving beyond the traditional image of internal combustion engines.
By sharing components and collaborating on research, Nissan and Honda aim to reduce costs, accelerate development timelines, and achieve greater efficiency through economies of scale once production begins. This move also positions them to better compete with Toyota Motor Corp., Japan's largest automaker, which has been a dominant player in the industry.
European manufacturers, including Volkswagen, BMW, Mercedes-Benz, and Stellantis, are pursuing similar software development collaborations to share common operating systems. While Toyota has explored software talks with Nissan and Honda in the past, it was not part of Monday's announcement. Toyota is independently working on software with other entities, such as Subaru and the U.S. autonomous driving technology company Waymo.
Nissan and Honda stated that they will continue to explore further collaboration opportunities in various areas, including zero-emissions technology and efforts to reduce traffic fatalities. Both companies emphasized the strategic importance of intelligence and electrification technologies as focal points for their joint efforts. "Recognizing the need to strengthen competitiveness through faster development cycles and more efficient investment, the two companies have conducted extensive studies on potential collaboration in the software domain," they said in a joint statement.