Honda, Nissan to Jointly Develop Core SDV Components

Tokyo, Aug. 31 (Jiji Press)–Honda Motor Co. and Nissan Motor Co. said Monday they have agreed to jointly develop and standardize operating systems and other core components for software-defined vehicles, with both planning to install them in their new models from fiscal 2029. The move by the two major Japanese automakers is aimed at splitting huge development costs and countering U.S. electric vehicle giant Tesla Inc. and Chinese competitors that lead the field. The agreement came 18 months after Honda-Nissan business integration talks broke down in February 2025. With the business environment worsening due to intensifying competition and high U.S. tariffs, cooperation between the two companies is shifting into higher gear. Mitsubishi Motors Corp., also a Japanese automaker, in which Nissan has a stake, is expected to join the SDV-related partnership. SDVs allow users to add functions and services through onboard software updates after they buy them, much like smartphone apps, while enabling automakers to generate recurring service revenue. Besides in-vehicle operating systems, Honda and Nissan will jointly develop and standardize items such as electronic control units for vehicle functions such as braking. Standardizing core components and increasing the number of vehicles that use them will make it easier to recoup investments, reduce parts procurement costs and obtain more driving data. Honda and Nissan said they aim to maximize development resources and efficiency by combining their technological expertise and personnel. Meanwhile, the two companies will pursue their own approaches to autonomous driving and driver-assistance technologies, and in-car entertainment such as music. Honda and Nissan agreed in March 2024 to conduct joint research on basic SDV technologies. In December that year, they went further by launching talks on business integration, but the discussions ended unsuccessfully. Still, they continued talks on cooperation in individual fields. Further collaboration will likely be considered, including vehicle supplies in the North American market. For fiscal 2025, which ended in March this year, Honda posted a massive group net loss as it reviewed its electric vehicle strategy and struggled in the Chinese market. Nissan, which has been unable to overcome its sales slump, incurred a consolidated net loss for two years in a row in the same year. END [Copyright The Jiji Press, Ltd.]