Japanese automakers Nissan and Honda have agreed to jointly develop key systems, software, and standardized electronic control units (ECUs) for software-defined vehicles. This partnership marks the first major collaboration between the two companies since talks for a planned merger fell through last year.
Under the agreement, Yokohama-based Nissan and Tokyo-based Honda will share standardized parts in core ECUs as well as software. These developments are intended for next-generation vehicles set to enter the market in fiscal 2029.
The move is aimed at splitting huge development costs and countering the lead held by U.S. electric vehicle giant Tesla and Chinese competitors. Software has become a key battleground for automakers as vehicles take on more autonomous-driving functions.