Nissan and Honda partner to develop software for cars

Japanese automakers Nissan and Honda have partnered to jointly develop software for cars that will be launched in fiscal 2029, according to a statement made on Monday. Nissan, headquartered in Yokohama, and Honda, based in Tokyo, will collaborate on standardized components called electronic control units (ECUs) and software for these vehicles.

Discussions between the two companies began in 2024 as they aimed to advance in electric vehicle technology and auto intelligence. Nissan is known for its Leaf electric cars and Infiniti luxury models, while Honda produces vehicles such as the Accord sedan, Civic compact, and Odyssey minivan. The agreement does not mention electric vehicles or specific model names, but focuses on software-defined vehicles, which are capable of having their functions and features updated via software, as opposed to traditional hardware-based systems.

As the automotive industry becomes increasingly competitive in areas such as automated driving and zero-emission technologies, the cooperation between Nissan and Honda is expected to help reduce costs, accelerate development, and leverage economies of scale. The partnership also strengthens Nissan and Honda's positions against Toyota, which is the leading Japanese automaker.

Although Toyota is mentioned in past software talks involving Nissan and Honda, it was not involved in the recent agreement. The collaboration between Nissan and Honda will continue to explore further opportunities for partnership, including zero-emissions and reducing traffic fatalities. Both companies emphasized that intelligence and electrification technology are crucial aspects of their partnership, stating that they conducted extensive studies to determine the potential of collaboration in the software domain.