Japanese automakers Nissan and Honda agree to work together on software for cars

Japanese automakers Nissan and Honda have agreed to collaborate on developing software and computer components for vehicles slated to hit the market in fiscal 2029. The partnership, announced on Monday, involves Nissan from Yokohama and Honda from Tokyo sharing standardized parts and software, specifically electronic control units and related software.

The agreement, which did not specify electric vehicles or model names, focused on software-defined vehicles capable of updates via software, a category that includes electric vehicles.

The joint effort comes as the global auto industry intensifies its competition through technologies like automated driving and zero-emission vehicles. As cars increasingly resemble sophisticated computers packed with electronic components and software, sharing components and conducting collaborative research aims to reduce costs, expedite development, and enhance efficiency through economies of scale.

European automakers Volkswagen, BMW, Mercedes-Benz, and Stellantis are also engaged in software development, sharing a common operating system. Both Nissan and Honda, despite being overshadowed by Toyota Motor Corp., the leading Japanese automaker, see this collaboration as a strategic advantage in competing against Toyota. Toyota has reportedly engaged in software discussions with Nissan and Honda, though it was not part of Monday's announcement.

Beyond the immediate partnership, Nissan and Honda plan to explore further collaboration opportunities, including zero-emission vehicles and reducing traffic fatalities. Both companies emphasized the importance of intelligence and electrification technology in their collaboration. Recognizing the need to bolster competitiveness through faster development cycles and more efficient investments, Nissan and Honda have conducted thorough studies on potential software collaborations, according to a joint statement.