Honda and Nissan recently announced they will jointly develop standardised electronic control units for software-defined vehicles, deepening their collaboration on advanced automotive technology, according to a report by Reuters.

The Japanese automakers plan to introduce a shared architecture combining the jointly developed ECUs and software in next-generation vehicles from the 2029 financial year onwards. The companies said in a joint statement that they aim to establish common specifications for core ECUs, operating systems, and parts of the middleware and vehicle-control software.

The move comes as software has become a key competitive battleground for automakers. Modern vehicles increasingly rely on advanced systems for autonomous driving, connected functions, driver assistance, and over-the-air updates, all of which have raised development costs significantly.

The agreement also reflects growing pressure from Chinese manufacturers such as BYD, which have expanded in markets including Europe and Southeast Asia with electric and hybrid vehicles that offer advanced software features, adds the Reuters report.

The collaboration stems from talks that began in 2024, when Honda and Nissan agreed to jointly research next-generation software platforms. It follows the collapse of merger discussions between the two firms more than a year ago. A merger would have created the world's fourth-largest automaker, further adds Reuters.

Nissan's alliance partner, Mitsubishi Motors, said it was considering joining the collaboration and remained in discussions with the two automakers on potential areas of cooperation.