Nissan and Honda Unite to Pioneer Future Automotive Software

POLICY WIRE — Tokyo, Japan — In a significant move towards future automotive technology, Nissan and Honda have forged an agreement to collaboratively develop computer components and software for vehicles slated for release in fiscal 2029, as announced by both companies on Monday.

This collaboration will see the Yokohama-based Nissan and Tokyo-headquartered Honda sharing standardized parts in “core ECUs,” or electronic control units, along with software.

Discussions between Nissan and Honda regarding joint development of electric vehicles and automotive intelligence technology commenced in 2024. Nissan, known for its Leaf electric cars and Infiniti luxury models, and Honda, manufacturer of the Accord sedan, Civic compact, and Odyssey minivan, are pooling resources to enhance their competitive edge.

The agreement, while not specifically targeting electric vehicles or particular model names, is centered on software-defined vehicles. These advanced vehicles feature functions and attributes that are software-updatable and controllable, marking a shift from traditional hardware-centric designs.

As the global automotive industry ramps up competition in technologies like automated driving and zero emissions, vehicles are increasingly becoming sophisticated computers equipped with electronic parts and software, rather than merely engines.

By sharing components and pooling research efforts, Nissan and Honda aim to reduce costs, accelerate development timelines, and achieve economies of scale once these vehicles enter production.

This strategy mirrors efforts by European automakers Volkswagen, BMW, Mercedes-Benz, and Stellantis, who are also collaborating on software development to share a common operating system.

Despite being overshadowed by Toyota Motor Corp., Japan’s leading automaker, Nissan and Honda’s partnership could bolster their position in the market. Although Toyota has been previously mentioned in software talks with Nissan and Honda, it was not included in Monday’s announcement.

Toyota is advancing its software initiatives with companies like Subaru and U.S. autonomous driving technology firm Waymo.

As part of their alliance, Nissan and Honda will continue to seek additional collaboration opportunities across various domains, including zero-emissions technology and strategies to reduce traffic fatalities.

Both companies emphasized the critical role of intelligence and electrification technology in their joint efforts. Acknowledging the necessity to enhance competitiveness through quicker development cycles and more efficient investment, the two companies have undertaken extensive research into potential collaboration in the software sector, they stated in a joint announcement.

Reporting by Policy-Wire (PW)