Japan's auto giants unite in tech push to challenge Chinese rivals

Honda, Nissan and Mitsubishi are deepening their technology partnership as Japan's automakers seek to reduce costs and accelerate vehicle development in response to growing competition from Chinese and U.S. rivals.

According to sources familiar with the discussions, Honda Motor and Nissan Motor are in the final stages of an agreement to jointly develop electronic control units (ECUs) for next-generation software-defined vehicles (SDVs), a key technology that increasingly determines vehicle performance and functionality, The Asahi Shimbun reports. 

The shared ECUs could be introduced in vehicles produced by both companies as early as 2029, the sources said. Mitsubishi Motors, a Nissan affiliate, may also adopt the technology.

The automakers are also discussing the possibility of sharing vehicle operating software, which could further reduce development costs and shorten the time needed to bring new models to market.

The cooperation marks a more focused approach after broader merger discussions between Honda and Nissan collapsed earlier. The two companies had announced plans in 2024 to collaborate on SDVs, batteries and other advanced technologies, but talks later expanded into merger negotiations that ultimately failed when Nissan rejected a proposal to become a Honda subsidiary.

Industry analysts say the latest initiative could lay the groundwork for deeper collaboration in software development, an increasingly important area as automakers compete to deliver more connected and software-driven vehicles.

By Sabina Mammadli