Honda, Nissan to roll out jointly developed vehicle software, control units in FY2029

TOKYO - Japanese automakers Nissan and Honda announced on August 31 their intention to jointly develop standardised electronic control units (ECUs) for software-defined vehicles. This collaboration, outlined in a joint statement, will expand their partnership on advanced car technology, with the architecture set to incorporate the jointly developed ECUs and software in next-generation vehicles starting from the 2029 financial year.

The automotive industry has increasingly focused on software as a crucial battleground, given the growing autonomous-driving and connected functionalities in modern vehicles. Competing for resources in operating systems supporting features like driver assistance, entertainment, and over-the-air updates has led to rising development costs for automakers.

The joint venture among Nissan and Honda also highlights the mounting competitive pressure from Chinese automakers, such as BYD, which have made significant strides in markets like Europe and Southeast Asia, offering electric and hybrid cars equipped with sophisticated software features.

The announcement results from discussions that commenced in 2024, when Honda and Nissan agreed to collaborate on researching next-generation software platforms. This development comes a year after the two companies dropped merger talks, which would have positioned them as the world's fourth-largest automaker. Honda and Nissan aim to establish common specifications for core ECUs within their vehicles' electrical and electronic architecture, alongside the operating systems and components of the middleware and vehicle-control software.

Mitsubishi Motors, Nissan's alliance partner, has expressed interest in joining the collaboration and is currently in talks with the two automakers to explore potential areas of cooperation. This joint effort underscores the commitment of these automakers to push the boundaries of automotive technology through shared innovation.