KATHMANDU: Honda Motor and Nissan Motor have agreed to collaborate on software-defined vehicles (SDVs), marking a new step in their cooperation.
The two Japanese automakers plan to jointly develop a vehicle operating system and onboard computer. The technology could be introduced in new vehicles as early as fiscal 2029.
The partnership will focus on core SDV technologies. SDVs allow vehicles to receive software updates over the air, similar to smartphones.
Sharing software technology could help Honda and Nissan reduce development costs. It could also help them collect more vehicle data and improve their software systems over time.
Honda and Nissan first announced plans to explore cooperation in March 2024. Their discussions initially focused on EVs and SDVs.
The talks later expanded to a possible management integration. However, the merger discussions collapsed in February 2025. The two companies have since continued to explore cooperation on individual projects.
The latest agreement is significant as it brings the two companies together in core vehicle software development.
Honda sold around 3.52 million vehicles globally in 2025, ranking ninth in global sales. Nissan sold around 3.2 million units and ranked 11th.
Together, the companies sold around 6.72 million vehicles last year. This would have placed them fourth among global automakers, ahead of General Motors and Stellantis.
However, Toyota, Volkswagen and the combined Hyundai-Kia group still have a larger global sales volume.
The collaboration comes as automakers around the world invest heavily in software and connected vehicle technology. Increasing scale in SDVs is becoming important as companies look to compete with technology-focused EV manufacturers, writes NIKKEI Asia
