Honda and Nissan’s True Future Might Not Involve Cars at All | Carscoops

      Under pressure from Chinese competitors, two Japanese automakers will join forces for software development.

      Honda and Nissan plan to work together on strategies for future software-defined vehicles. This collaboration involves creating an internal system that allows for additional features and upgrades. Both companies aim to standardize critical components, such as semiconductors, to enhance cost-efficiency.

      The abrupt end of merger discussions between Nissan and Honda earlier this year represented a significant challenge for both companies, particularly for Nissan, which had anticipated that the merger would help revitalize its struggling operations. Although a complete merger is off the table, the two Japanese automakers are now pursuing a different type of alliance, focusing on standardized vehicle software that is expected to appear in their product lines later this decade.

      It is known that Nissan and Honda have been investigating new software technologies since August 2024 and are now planning to bring their developments to market. The partnership will involve next-generation software-defined vehicles and a new infotainment platform for upcoming models.

      Moving Toward a Unified Digital Foundation

      According to Nikkei Asia, the two manufacturers also intend to standardize essential components, including semiconductors and motors. By developing their software in-house, Nissan and Honda will not only cut costs but will also be able to gather all relevant data, which is becoming increasingly vital in the landscape of software-defined vehicles.

      If they had opted for third-party providers, data usage would likely have been limited. By controlling the ecosystem, Nissan and Honda gain greater oversight, not just over the technology but also over the information that flows through it.

      This initiative will be costly and could eventually exceed $10 billion. However, this initial investment may yield benefits in the long run as Honda and Nissan could monetize software updates and upgrades, establishing a new revenue stream.

      Currently, the two automakers are developing their individual software platforms for vehicles set to launch next year. Once the next-generation system is complete, engineers from Honda and Nissan will likely create different interfaces for the system, even though the core software architecture will remain consistent.

      The Challenge from China

      This collaboration also highlights the increasing pressure from emerging Chinese electric vehicle manufacturers, who have rapidly surpassed traditional automakers in in-car technology. Some affordable electric models from China now feature more advanced and responsive software than what's available in premium offerings from established brands like Honda and Nissan.

      As consumer expectations shift toward more integrated digital experiences, Nissan and Honda appear to be adjusting their strategies, aiming to catch up by developing smarter, more connected platforms from the ground up.