Honda and Nissan are discussing sharing basic software systems for advanced vehicle controls, according to local reports citing sources familiar with the matter, as competition in the global automotive industry continues to intensify.
The two Japanese automakers called off merger talks earlier this year, but remain keen to expand their collaboration as standalone companies and generate synergies where possible, as competition from Chinese and other Asian automakers in global markets continues to rise.
Go deeper with GlobalData
The reports suggested that Honda and Nissan are discussing sharing the cost of developing software systems for use in software-defined vehicles (SDVs), which they plan to launch in the second half of this decade. Honda had previously indicated that it planned to launch battery electric vehicle (BEV) models equipped with its own SDV software from 2026.
The development and operation of SDVs require huge amounts of data, so maximizing economies of scale by cost-sharing is seen as key to competing in this emerging segment of the market. Chinese automakers and Tesla are seen as leading the way in the development of SDVs, along with US BEV maker Tesla. Japan’s Toyota Motor is understood to be considering sharing its SDV software with Mazda.
