Nissan and Honda Join Forces on Next-Generation Vehicle Software

TOKYO — Japanese automakers Nissan and Honda have entered into an agreement to jointly develop computer components and software for vehicles slated to enter the market in fiscal 2029, both companies announced Monday.

Under the partnership, Yokohama-based Nissan and Tokyo-based Honda will share standardized components for core electronic control units (ECUs), as well as the software that runs them.

Nissan and Honda began discussions in 2024 focused on collaboration in electric vehicle development and automotive intelligence technology.

Nissan manufactures the Leaf electric car and Infiniti luxury models, while Honda produces the Accord sedan, Civic compact, and Odyssey minivan.

Monday’s agreement did not specifically address EVs or name any particular models, instead focusing on software-defined vehicles — a category that may encompass EVs. These vehicles rely on software for updates, features, and functionality, moving beyond traditional mechanical hardware.

The global automotive industry faces intensifying competition as it advances toward technologies such as automated driving and zero emissions. Vehicles are increasingly resembling computers packed with electronic components and software rather than the gas-powered machines of the past.

Sharing components and collaborating on research will help reduce costs, accelerate development, and achieve greater economies of scale once production begins.

European manufacturers Volkswagen, BMW, Mercedes-Benz, and Stellantis are already pursuing similar software development partnerships, aiming to share a common operating system.

Both Nissan and Honda currently trail Toyota Motor Corp., Japan’s leading automaker, and their collaboration could strengthen their competitive position against the industry giant.

Toyota had reportedly participated in earlier software discussions with Nissan and Honda, though it was not included in Monday’s announcement.

Toyota continues to develop software with other partners, including Subaru — part of the Toyota group — and U.S.-based autonomous driving technology company Waymo.

As part of their broader strategic partnership, Nissan and Honda plan to explore additional areas for collaboration, including zero-emissions initiatives and traffic safety improvements.

Both companies emphasized that intelligent and electrification technologies remain central priorities 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.

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