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Honda, Nissan to jointly develop vehicle software

Created at 28 Aug · 7:00 PM1 source↑ Market-relevant
IN SHORT

Honda and Nissan are nearing an agreement to jointly develop a shared operating system and onboard computer for new vehicles, aiming to reduce costs and improve development efficiency as the industry shifts towards software-defined vehicles.

Key Numbers

2029earliest vehicle implementation year

Who's Involved

Honda Motor
Japanese automaker collaborating on vehicle software
Nissan Motor
Japanese automaker collaborating on vehicle software
Toshihiro Mibe
CEO of Honda Motor
Ivan Espinosa
CEO of Nissan Motor
Honda, Nissan to jointly develop vehicle software

↳ Why This Matters

This partnership signifies a strategic shift for Honda and Nissan to pool resources and expertise in critical software development, a key battleground for future automotive competitiveness, potentially impacting development costs and the pace of innovation in autonomous and connected driving technologies.

Key facts

  • Honda and Nissan are nearing an agreement to jointly develop a shared operating system and onboard computer for new vehicles.
  • The collaboration aims to improve development efficiency and reduce costs in the automotive industry.
  • The new system is expected to be implemented in vehicles as early as 2029.
  • The operating system will be based on Nissan's existing technology.
  • This follows previous merger talks between the two Japanese automakers that ultimately failed.

Honda Motor and Nissan Motor are reportedly close to an agreement to jointly develop a shared operating system and onboard computer for their next-generation vehicles. This collaboration, expected as soon as Monday, aims to enhance development efficiency and cut costs as the automotive industry increasingly focuses on software-defined vehicles (SDVs).

The two Japanese automakers, who previously explored a full merger that ultimately collapsed in early 2025, have continued to examine cooperation on specific projects. The new operating system (OS) will reportedly be based on Nissan's existing technology, with functionality such as autonomous driving and advanced driver-assistance systems (ADAS) to be added or improved through software updates.

Software and electronic hardware are becoming a larger portion of vehicle costs, making standardization crucial amid intensifying global competition. The companies had previously announced in 2024 that they would explore collaboration in areas including SDVs, batteries, and vehicle supply. A formal agreement on the OS and electronic hardware, including electronic control units (ECUs), is anticipated next month, with the first vehicles featuring the new system potentially rolling out as early as 2029.

Frequently asked questions

The main goal is to jointly develop a shared operating system and onboard computer to improve development efficiency and reduce costs for next-generation vehicles.

The operating system will reportedly be based on Nissan's existing technology.

Vehicles featuring the new system could be released as early as 2029.

Yes, they explored a potential merger and have continued to examine cooperation on a project-by-project basis, including in areas like SDVs and EV batteries.

What Happens Next

01A formal agreement is expected to be announced next month.
CME Headlines
  • September 2026 Delivery Date Memo - Effective August 24, 2026
    24 Aug · 4:34 PM

How It Developed

Honda and Nissan explored collaboration in areas including software-defined vehicles (SDVs), batteries, and vehicle supply.
Merger discussions between Honda and Nissan ultimately collapsed.
The automakers continued to examine cooperation on a project-by-project basis.
Honda and Nissan are expected to agree on developing a shared operating system and onboard computer for new automobiles.
The joint development will be based on Nissan's existing technology.
A formal agreement is expected to be announced soon.

Sources

T1
Honda, Nissan to reach deal on joint development of vehicle softwareNikkei Asia
T2
Honda and Nissan to jointly develop next-generation car operating ...japantimes.co.jp
T2
Nissan, Honda to standardise OS, electronic hardware - reportsjust-auto.com

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