Honda and Nissan to Develop 'Car Brain' Together, to Be Installed in New Models in 2029

[Financial News, Tokyo = Reporter Seo Hye-jin] Honda and Nissan Motor Co., Ltd., which failed to merge their management, will jointly develop an in-vehicle operating system (OS) and computer that serve as the 'brain' of next-generation cars. The move marks a full-scale technological alliance among Japanese automakers as they seek to compete in the software-defined vehicle (SDV) market led by Tesla and Chinese electric vehicle makers.
According to Nihon Keizai Shimbun on the 31st, Honda and Nissan announced that they had agreed to cooperate in the SDV field and signed a joint development contract. The two companies plan to standardize core technologies, including the in-vehicle OS and electronic control units (ECUs) used in onboard computers, and begin installing them in new models as early as fiscal 2029.
SDVs are vehicles that can continuously improve functions and performance through software updates, much like smartphones. As electrification and autonomous driving technologies spread, they are emerging as a key area that will shape the next stage of competitiveness in the global auto industry.
The two companies expect that expanding the range of models using the OS and increasing ECU procurement volumes will help reduce development and parts costs. As more vehicles adopt the common system, they will also collect more driving data, which could strengthen their competitiveness in software and service development.
Honda and Nissan had been exploring cooperation in SDVs and other areas since March 2024, and had carried out basic joint research. They entered merger talks in December of that year, but the negotiations collapsed in February 2025 over differences on leadership and governance. Since then, the two companies have been seeking ways to cooperate through individual projects rather than a full-scale integration.

[email protected] Seo Hye-jin Reporter