Tokyo, July 16, 2025 - Honda Motor Co. and Nissan Motor Co. have begun accelerating efforts to co-develop a standardized foundational software platform for vehicle control, aiming to introduce jointly developed operating systems in their next-generation vehicles by the late 2020s. As global competition intensifies around electric and software-defined vehicles (SDVs), the two Japanese automakers seek to enhance development efficiency while containing soaring costs.
Since August 2024, Honda and Nissan have been conducting joint basic research into automotive software technologies. Although the two companies held merger talks in December 2024-with Honda proposing full ownership-the negotiations ultimately broke down due to disagreements over structure. Nevertheless, discussions around EV and software collaboration have continued steadily. As of July 2025, both sides have committed to advancing cooperation on the development of next-generation vehicle operating systems, marking a significant step forward in their strategic partnership.
The next wave of automotive innovation is being driven by Software-Defined Vehicles (SDVs), which rely on frequent software updates over the internet to enhance performance and expand functionality. This shift not only changes the technical foundation of vehicles but also opens up new business models, such as subscription-based services, moving away from traditional one-time vehicle sales.
Honda is currently developing its own operating system, "ASIMO OS," based on technologies cultivated through its humanoid robotics program. Nissan is also working on its own proprietary platform. The two companies aim to combine their expertise to build a highly customizable and user-friendly system, comparable to Apple's iOS or Google's Android. This jointly developed platform is expected to be deployed in production vehicles starting in the latter half of the 2020s.
In addition to software, Honda and Nissan are considering the standardization of critical hardware components such as high-performance semiconductors and electric motors. This would further reduce development costs and improve compatibility. Honda plans to introduce large aluminum die-casting technology in its EVs starting in 2026, while Nissan is set to adopt similar manufacturing methods for select models in fiscal 2027. Nissan is also reportedly considering manufacturing large EVs for Honda in the U.S., further strengthening their production collaboration.
A major driver behind this alliance is the growing concern over access to and control of critical vehicle data, which is expected to play a decisive role in the competitiveness of autonomous driving and in-vehicle experience technologies. Relying on third-party software could restrict how data is used. By jointly developing their own system, both companies aim to secure data access and reduce the projected multitrillion-yen investment needed for such technologies.
According to Canadian research firm Precedence Research, the global SDV market is forecast to reach $301 billion by 2034, a sixfold increase from 2023. With the market expanding rapidly and technological demands rising, Honda and Nissan see joint development as a strategic necessity. In June 2025, 11 major European automakers and parts suppliers also announced plans for a joint software platform. Toyota is pursuing a similar path with Mazda.
Tesla, a front-runner in the EV space, has developed its own OS, which enables it to resolve about 40% of its vehicle recalls via software updates. In China, tech companies like Huawei and Xiaomi are also leading the charge in automotive software innovation.
While Honda and Nissan have ruled out a resumption of merger talks in the short term, both companies have prioritized collaboration in the SDV space. As the second half of 2025 unfolds, their coordinated efforts signal a clear ambition: to build technological and commercial competitiveness in the evolving landscape of intelligent mobility.
