Honda and Nissan Sign Joint Development Pact for Next-Generation Vehicle Core Systems and Software

On August 31, 2026, Honda and Nissan formally initiated cooperation by signing a joint development agreement for next-generation software-defined vehicles. The agreement covers the standardization of multiple core electronic control units (ECUs), in-vehicle operating systems, key middleware components, and vehicle control software running on these ECUs. Under the plan, the jointly developed electronic and electrical architecture will be applied to each company's next-generation software-defined vehicle models starting in fiscal year 2029.

This cooperation is the first officially announced collaboration between Honda and Nissan since the termination of their merger plan in February 2025, and it is also the first partnership among Japanese automakers in the software-defined vehicle field.

The two companies stated that standardizing related technologies will integrate their engineering expertise and development resources, reduce development costs, and achieve greater economies of scale, thereby enhancing market competitiveness. Software has been identified as a key focus of this collaboration, given the rapid pace of technological iteration and its critical importance to vehicle intelligence and electrification. Both companies also indicated that, as strategic partners, they will continue to explore cooperation opportunities in other areas.

The global automotive market landscape has shifted, with Chinese automakers rising on the strength of new energy vehicles. In the first half of 2026, BYD's global sales exceeded 1.8 million units, ranking sixth and surpassing Honda's 1.66 million and Nissan's 1.5 million. Honda recorded its first annual loss in 70 years, with global sales down 7.5% year-on-year in 2025 and approximately 6.5% lower in the first half of 2026.

The relationship between the two companies has been turbulent. Despite the termination of the merger plan, they have said they will continue to consider other collaborative projects, and this software partnership is the result of that ongoing dialogue.