Nissan, Honda deepen auto tech partnership

Nissan and Honda are expanding their partnership into the electronic systems that will power vehicles expected to reach the market in fiscal 2029.

The Japanese automakers said they will jointly develop standardized components for core electronic control units, along with software. The agreement does not name specific models or focus exclusively on electric vehicles. Instead, it targets software-defined vehicles, whose functions can be updated and controlled through software rather than relying only on mechanical hardware.

Nissan and Honda began discussions in 2024 on electric vehicles and automotive intelligence technology. They said sharing components and research should lower costs, speed development and create economies of scale once production begins.

The agreement comes as automakers compete more intensely in automated driving, zero-emissions technology and other electronic systems. Volkswagen, BMW, Mercedes-Benz and Stellantis are also cooperating on software development and shared operating systems. Vehicles increasingly depend on computer parts and software, moving beyond the traditional focus on internal-combustion engines.

Nissan and Honda both face Toyota, Japan’s largest automaker, and say cooperation can strengthen their competitiveness. Toyota was previously mentioned as a possible participant in software discussions with the two companies, but it was not part of Monday’s announcement. Nissan and Honda said they would continue examining other areas of collaboration, including zero-emissions technology and reducing traffic fatalities.

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Recognising 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.