Honda and Nissan, two of Japan’s biggest carmakers, are now working together to build smarter and more advanced vehicles. The companies have signed a research agreement to develop a shared software system for future electric cars. This move is part of their plan to catch up with fast-growing rivals like Tesla and Chinese EV makers, who are leading in vehicle software innovation.
According to Honda Global, the two companies will focus on creating a software-defined vehicle (SDV) platform. SDVs are cars that rely heavily on software to control driving, safety, entertainment, and more. These vehicles can receive updates over the internet, just like smartphones, allowing them to improve over time without needing a visit to the mechanic.
Honda and Nissan aim to finish their basic research within a year. If successful, they could start building cars with the shared software system by the end of the decade. The partnership also includes plans to work together on electric vehicle batteries, motors, and other key parts. By sharing these components, both companies hope to reduce costs and speed up production.
One major part of the deal is battery supply. Honda and Nissan are studying the possibility of using lithium-ion batteries from L-H Battery Company, a joint venture between Honda and LG Energy Solution. These batteries could be used in Nissan vehicles sold in North America after 2028. The companies also plan to standardize battery and motor designs so they can be used in both brands’ cars.
In addition to software and parts, Honda and Nissan are exploring ways to share vehicle models. For example, Nissan may build pickup trucks for Honda in the United States. This would help Honda expand its lineup in a market where it currently has few truck options. As Yahoo Finance reports, this could also help Nissan make better use of its factories and recover from falling sales.
The partnership comes at a time when the car industry is changing quickly. Software is becoming more important than hardware, and companies that don’t keep up risk falling behind. By working together, Honda and Nissan hope to stay competitive and offer smarter, safer, and more connected cars to customers around the world.
While Honda still plans to launch its own EVs with in-house software in 2026, this new collaboration could lead to even more advanced systems in the future. It’s a bold step that shows how even long-time rivals can come together when the road ahead demands it.
Catching up with global rivals
Tesla and Chinese EV makers like BYD have already built strong reputations for their smart car technology. Their vehicles come with powerful software that controls everything from battery performance to self-driving features. These companies also offer regular updates that improve the car’s abilities over time. Honda and Nissan’s partnership is a direct response to this challenge. By working together, they hope to match or even surpass the tech offered by these global leaders.
What this means for drivers
For everyday drivers, this partnership could lead to cars that are easier to use and more enjoyable to own. With software updates delivered over the air, owners won’t need to visit dealerships for upgrades or fixes. According to Honda Global, the companies believe that smarter software and shared innovation will help create new value for customers and improve the overall driving experience. Features like improved navigation, better safety systems, and even entertainment options could be added long after the car is purchased. This also opens the door to subscription services, where drivers pay monthly fees for premium features like advanced driver assistance or custom driving modes.
