Japanese automakers Nissan and Honda announced a partnership on Monday to jointly develop computer components and software for vehicles scheduled to enter the market in fiscal year 2029. The collaboration will focus on sharing standardized parts for core electronic control units (ECUs) as well as related software development.

Nissan, headquartered in Yokohama, and Honda, based in Tokyo, began discussions in 2024 aimed at cooperating on electric vehicle (EV) technology and automotive intelligence. While both companies currently produce electric and conventional vehicles—with Nissan manufacturing the Leaf electric car and Infiniti luxury models, and Honda offering the Accord sedan, Civic compact car, and Odyssey minivan—the new agreement does not explicitly reference EVs or any specific vehicle models.

The deal centers on what are known as software-defined vehicles. These platforms enable vehicle functions and features to be managed and updated primarily through software rather than changes in hardware. This approach is increasingly important as automakers seek to accelerate innovation in areas such as automated driving systems and emission reductions.

The partnership comes amid growing global competition in the automotive sector, where advances in electrification, connectivity, and autonomous capabilities are becoming key differentiators. By pooling resources and standardizing critical components, Nissan and Honda aim to enhance their technological development and improve efficiency heading into the next decade of vehicle production.