Honda and Nissan will jointly develop software for cars

By: Volodymyr Kolominov | 15.07.2025, 22:12
Details of the third-generation Nissan Leaf's displays have been revealed Third-generation Nissan Leaf displays. Source: Nissan

Honda and Nissan are joining forces to create software-driven next-generation vehicles. The companies intend to jointly develop their own platform, which will provide not only upgrades and additional features for a fee, but also standardisation of key components such as semiconductors and electric motors, which will help to significantly reduce costs.

Here's What We Know

Merger talks between the two auto giants, which collapsed earlier this year, could have been a salvation for struggling Nissan. However, instead of merging, the brands have now chosen a more pragmatic path - software co-operation. The new software architecture is expected to start being implemented in cars towards the end of the decade.

According to Nikkei Asia, Honda and Nissan engineers have been working together since August 2024 on the software and multimedia platform that will form the basis of future models. Unification of hardware - from chips to electric motors - is also planned.

Developing software in-house gives automakers full control over the entire ecosystem. Unlike third-party solutions, which often restrict data usage, an in-house system will allow Honda and Nissan to directly collect and analyse vehicle usage data - especially important in the era of software-defined vehicles.

The project won't come cheap: the investment could exceed $10 billion. But in the long term, this investment should pay off: manufacturers will be able to earn money on the sale of new features and updates after the car is sold.

For now, Honda and Nissan continue to develop their separate software platforms in parallel, which will debut as early as 2025. However, they may eventually merge under a single architecture but with individual interface designs for each brand.

Such a move also reflects growing competition from Chinese manufacturers, which already offer more advanced and user-friendly digital solutions even in budget models. Against this backdrop, Japanese brands are looking to catch up by creating flexible, smart platforms that can meet user expectations.

Source: Nikkei Asia