Honda Motor and Nissan Motor are reportedly nearing an agreement to collaborate on developing a shared operating system and onboard computer for their next-generation vehicles. This joint development aims to introduce new automobiles featuring this technology as early as 2029. The collaboration is focused on standardizing the core operating system for software-defined vehicles (SDVs), with an eye on leveraging Nissan's existing technology.
This partnership follows earlier discussions between the two Japanese automakers regarding broader cooperation, including SDVs, batteries, and vehicle supply. While previous merger talks between Honda and Nissan, which could have created a $60 billion company, ultimately collapsed, both companies continued to explore project-based collaborations. Nissan CEO Ivan Espinosa and Honda CEO Toshihiro Mibe have been central to these discussions.
The strategic move is driven by the increasing importance of software in modern vehicles, particularly SDVs, which allow for performance enhancements and new features through over-the-air software updates. By sharing the development burden, Honda and Nissan anticipate significant cost reductions, especially given the projected sixfold increase in vehicle software code lines from 2020 to 2030, which would otherwise lead to soaring development costs. The global market for SDVs is forecasted to reach $301 billion by 2034, a sevenfold increase from 2023.
This collaboration also addresses concerns about data control in SDVs. Developing their own shared platform allows Honda and Nissan to maintain control over valuable vehicle data, which is crucial for advancements in autonomous driving and in-vehicle amenities. The initiative also aims to help them compete with leaders in vehicle software innovation like Tesla and Chinese EV makers, as traditional automakers have faced challenges in hiring sufficient software engineers to develop platforms independently. Both companies plan to use gigacasting in their manufacturing processes to further reduce production costs, with Honda starting in 2026 and Nissan in fiscal 2027.
