Honda, Nissan Eye Shared Vehicle Software Platform by 2029

Honda Motor and Nissan Motor are reportedly moving closer to an agreement to jointly develop a new vehicle operating system and onboard computer, signaling deeper cooperation between two of Japan’s largest automakers following the collapse of their proposed merger.

According to a Saturday report from the Nikkei newspaper, Honda and Nissan could reach an agreement as early as Monday. The planned partnership would focus on developing shared automotive software and computing technology for new vehicles expected to launch from 2029.

A common operating system and onboard computer could allow Honda and Nissan to reduce development costs while accelerating the rollout of software-defined vehicles. Automakers worldwide are investing heavily in advanced vehicle software as digital services, connectivity, autonomous driving technology and artificial intelligence become increasingly important parts of the automotive industry.

Honda, however, stressed that a final agreement has not yet been reached. The Japanese automaker said it continues to discuss “potential areas of collaboration” with Nissan and Mitsubishi Motors, indicating that the scope and details of any software partnership remain under consideration.

Nissan CEO Ivan Espinosa also confirmed earlier this month that the company was exploring possible software collaboration with Honda. The latest report suggests those discussions may now be approaching a more concrete stage.

The potential Honda-Nissan software partnership comes more than a year after the companies abandoned negotiations over a proposed merger. That combination could have created an automotive group valued at approximately $60 billion and strengthened the Japanese manufacturers as they faced growing competition from global electric vehicle makers.

Although their merger plans were ultimately scrapped, Honda and Nissan have continued to explore opportunities to cooperate in areas where sharing technology could improve efficiency and competitiveness.

A joint vehicle operating system would represent a significant step in that strategy. By sharing core software and onboard computing infrastructure, Honda and Nissan could potentially streamline vehicle development while responding more quickly to the automotive industry’s shift toward electric, connected and software-defined vehicles.

Any agreement would also highlight how the two Japanese automakers are pursuing targeted technological partnerships despite deciding against a broader corporate combination.