logo
Honda and Nissan to co-develop car software platform: Report

Honda and Nissan to co-develop car software platform: Report

Hindustan Times6 days ago
Since August 2024, Nissan and Honda have been investing in research for next-generation automotive software. The new strategy extends beyond the infotainment systems, aiming for an all-encompassing digital platform that will form the foundation for next-generation models of both brands. (REUTERS/Kim Kyung-Hoon) Check Offers
Earlier this year, merger discussions between Japanese auto giants Nissan and Honda collapsed, halting what could have been one of the most significant consolidations in the global auto industry. While that ambitious plan has now been shelved, both companies are opting for a more focused, less dramatic collaboration, a report by Nikkei Asia The new strategy focuses on co-developing software platforms for next-generation vehicles — a strategic shift designed to position itself as relevant in an age rapidly driven by software-defined vehicles and connected mobility.
This union, if not quite an alliance, indicates an increased sense of urgency to rethink the manufacturing of and experience with vehicles. Evidence of this collaboration first may be seen in production cars later in this decade as it begins a transition away from mechanical hardware and toward software ecosystems as the new turf of competitiveness. Building a shared software core
Since August 2024, Nissan and Honda have been investing in research for next-generation automotive software. The new strategy extends beyond the infotainment systems, aiming for an all-encompassing digital platform that will form the foundation for next-generation models of both brands. At the heart of this initiative is the ambition to standardize elements like electric motors and semiconductors — technologies that will form the heart of their common architecture.
Also Read : 2026 Nissan Patrol Nismo unveiled as the most powerful version ever. Check details
One of the primary benefits of this internal strategy is ownership of data. Instead of depending on external suppliers of digital systems, Honda and Nissan desire to own the user data created through vehicle systems — an asset that's ever-more valuable in the future automotive economy. This would facilitate more nimble development, enhance product feedback loops, and enable future monetization via software-based services.
But the project does not come cheap. Development of this shared software architecture could cost more than $10 billion, estimates say. The long-term payoff, however, might be in the form of repeat business, as brands move toward charging for software updates and upgrades — a model some EV makers already follow. Responding to China's digital push
This shift toward a common digital future is also underscored by a more immediate threat: the increasing prominence of Chinese EV brands in vehicle software and connectivity. Among some of the cheapest Chinese electric models are now digital systems that are competitive — and in some instances, superior — to those in premium offerings by traditional automakers.
For Nissan and Honda, it is not about software but survival. The emergence of software-led automotive design has taken many established players by surprise, and both Japanese manufacturers have accepted that they must speed up their digital revolution. Consumer demands are changing fast, and convenient user experiences and connected services have become the minimum requirements instead of niceties.
Also Read : Honda City Hybrid gets a price cut, more affordable by ₹ 1 lakh A collaborative step toward catching up
In the short-term, Nissan and Honda will continue working on their respective software platforms for future models. Eventually, however, it looks like the goal is to introduce a shared core system, topped with brand-specific interfaces. This would be similar to the tactics adopted in the smartphone sector, where ordinary operating systems still provide bespoke user experiences.
Rather than competing on past strengths, both brands agree that there will need to be a focus on building smarter cars from scratch. Whether this software partnership provides the margin of innovation required to keep pace with fast-moving competitors — especially from China — remains to be seen, but it is a needed directional correction in an era where digital leadership more than ever determines brand significance.
Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.
First Published Date: 20 Jul 2025, 11:00 am IST
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Rare earth supply risk: Indian electronics firms worried as Chinese curbs may hit; but can Beijing also afford this?
Rare earth supply risk: Indian electronics firms worried as Chinese curbs may hit; but can Beijing also afford this?

Time of India

timean hour ago

  • Time of India

Rare earth supply risk: Indian electronics firms worried as Chinese curbs may hit; but can Beijing also afford this?

This is an AI-generated image, used for representational purposes only. A number of applicants under India's Electronics Component Manufacturing Scheme (ECMS) have flagged concerns over meeting their first-year production targets due to ongoing shortages of rare earth minerals. According to ET, at least 10 companies have raised the issue with the ministry of electronics and information technology (MeitY), warning that if the shortage continues for another six months, they may not be able to meet the incentive-linked thresholds. The rare earth scarcity stems from export restrictions imposed by China, which controls more than 90% of global rare earth processing. China introduced special licensing requirements for seven rare earth elements and associated magnets from April 4 this year, leading to supply disruptions across key industries. These include electronics, automobiles, and clean energy technologies. "Companies have expressed concern, but within the sector, it isn't an alarming outcry," an official aware of the matter was quoted as saying by ET. 'If there is a component that uses rare earth, instead of importing that rare earth and making that component in India, they will simply import that component.' While firms are exploring alternatives, such as sourcing from different suppliers or shifting to rare-earth-free technologies, the timing has been challenging, particularly for those scaling up manufacturing for exports. 'The ECMS has been unveiled at a time when many entities want to scale up and take advantage of exports,' said Ashok Chandak, president of the India Electronics and Semiconductor Association (IESA), as quoted by ET. He added that supply shocks in rare earth magnets have hit the sector hard. The Rs 22,919 crore ECMS, launched in May, seeks to build a robust domestic ecosystem for electronic components like multi-layer PCBs, lithium-ion cells, resistors, capacitors, display and camera modules. PCBs have attracted particular attention from applicants, according to KS Babu, secretary of the Indian Printed Circuit Association (IPCA), who noted that the scheme addresses both multi-layer and high-density interconnect boards. However, he also pointed out that local production of key inputs like copper-clad laminates is still missing. 'Chinese suppliers are now taking advantage by squeezing prices, citing problems with shipments,' Babu said, as per ET. The scheme, effective from FY26 through FY32, includes a one-year gestation period. However, manufacturers, particularly MSMEs, have sought quicker access to incentives to recover their investments. A Delhi-based PCB maker was cited by ET saying that the government has informally assured leniency during the verification and claims process. Responding to industry requests, MeitY will extend the ECMS application window beyond July 31, as confirmed by officials. Many small firms are still finalising their sourcing channels, joint ventures, and tech partnerships. In a written reply to the Rajya Sabha, minister of state for commerce and industry Jitin Prasada noted that the export restrictions on rare earth magnets have led to supply chain bottlenecks for auto and electronics sectors. However, the ministry has not received specific reports of cost escalation or project delays from industry hubs in Maharashtra, as per news agency PTI. Despite the disruption, industry leaders remain hopeful. 'China also can't afford to continue an export ban for long, since their companies will begin bleeding and it will place a long term strain on their relations with many countries,' Chandak said, as per ET. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now

Maintaining sustained growth top priority, says FM Sitharaman
Maintaining sustained growth top priority, says FM Sitharaman

Time of India

timean hour ago

  • Time of India

Maintaining sustained growth top priority, says FM Sitharaman

New Delhi: Maintaining sustained growth is the top priority amid global uncertainties, and an incremental rise in public capital expenditure is one of the drivers for economic development, Finance Minister Nirmala Sitharaman said on Saturday. The statement assumes significance as the Indian economy grew by 6.5 per cent in FY25. This growth was the slowest in four years, and compares to a 9.2 per cent expansion in the previous 2023-24 fiscal. The Economic Survey has projected the GDP growth for FY26 between 6.3 per cent and 6.8 per cent, while the RBI lowered its growth forecast from an earlier level of 6.7 per cent to 6.5 per cent for the ongoing financial year. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Only Classless Women Wear these Over a Certain Age Learn More Undo Speaking at a book release event here, Sitharaman said, "To maintain the growth is the topmost priority. Growth is the topmost, and therefore, it will have an overlap with how you create jobs..." Keeping India relevant amid global challenges and being there in a leadership position, and moving forward along with other countries are other priority areas, she said, adding that the priority would also be to redefine the voice of the Global South. Live Events Finding resources for meeting many domestic economic aspirations within fiscal constraints is another priority, she said while releasing the book titled 'A World in Flux: India's Economic Priorities'. She further said the incremental rise in public capital expenditure is one of the primary drivers of sustained economic growth. "Public investments have kept pace. It has been Prime Minister Narendra Modi's clear instruction that we have to have capital expenditure grow and grow significantly. I confidently believe that it is one of the primary drivers of sustained economic growth," she said. The other focus area of the government is to push growth through a friendly and attractive FDI policy to be able to get more and more investments happening in India. Besides, she said, the healthy competition among states to attract investment is also a good sign. Speaking about bilateral trade deals, the finance minister said such agreements are taking priority over multilateral trade. "On the bilateral trade front, we are moving forward and we have seen bilateral agreements being signed in the last four to five years with Australia, UAE and the UK. Negotiations are progressing well with the United States as well as the European Union," she said. Asked about relations with China, Sitharaman said it is getting a bit better, and the beginning has been made with the visit of the External Affairs Minister recently. "We need more access, and we need to have a lot more interaction, and possibly open some windows. And that's not just from our side, even the Chinese have been approaching through the MEA. "So, you had External Affairs Minister S Jaishankar go. There is something, some kind of a beginning, as to how much it will take us far; how far it will go is something we will have to wait and see. It might help the economy; however, a sense of caution would have to be built in," she added.

China's Premier Li Qiang says AI progress needs regulation, not just speed, calls for global cooperation
China's Premier Li Qiang says AI progress needs regulation, not just speed, calls for global cooperation

First Post

time2 hours ago

  • First Post

China's Premier Li Qiang says AI progress needs regulation, not just speed, calls for global cooperation

China's Premier Li Qiang called for urgent global consensus on artificial intelligence safety and governance, announcing a new international cooperation body. read more Chinese Premier Li Qiang is seen on a screen as he speaks at the opening ceremony of the World Artificial Intelligence Conference in Shanghai. AFP China's Premier Li Qiang warned on Saturday that the growth of artificial intelligence must be balanced against security risks, stating that global agreement was urgently required even as the technology race between Beijing and Washington showed no signs of slowing down. His comments come just days after US President Donald Trump launched an ambitious low-regulation policy aimed at solidifying the country's dominance in the rapidly evolving area, vowing to 'remove red tape and onerous regulation' that may stymie private sector AI development. STORY CONTINUES BELOW THIS AD Opening the World AI Conference (WAIC) in Shanghai on Saturday, Li emphasised the importance of governance and open-source development, announcing the formation of a Chinese-led body for international AI cooperation. 'The risks and challenges brought by artificial intelligence have drawn widespread attention… How to find a balance between development and security urgently requires further consensus from the entire society,' the premier said. He gave no further details about the newly announced organisation, though state media later reported 'the preliminary consideration' was that it would be headquartered in Shanghai. The organisation would 'promote global governance featuring extensive consultation, joint contribution and shared benefits', state news agency Xinhua reported, without elaborating on its set-up or mechanisms. At a time when AI is being integrated across virtually all industries, its uses have raised major questions, including about the spread of misinformation, its impact on employment and the potential loss of technological control. In a speech at WAIC on Saturday, Nobel Prize-winning physicist Geoffrey Hinton compared the situation to keeping 'a very cute tiger cub as a pet'. STORY CONTINUES BELOW THIS AD To survive, he said, you need to ensure you can train it not to kill you when it grows up. Pledge to share AI advances The enormous strides AI technology has made in recent years have seen it move to the forefront of the US-China rivalry. Premier Li said China would 'actively promote' the development of open-source AI, adding Beijing was willing to share advances with other countries, particularly developing ones. 'If we engage in technological monopolies, controls and blockage, artificial intelligence will become the preserve of a few countries and a few enterprises,' he said. Vice Foreign Minister Ma Zhaoxu warned against 'unilateralism and protectionism' at a later meeting. Washington has expanded its efforts in recent years to curb exports of state-of-the-art chips to China, concerned that they can be used to advance Beijing's military systems and erode US tech dominance. Li, in his speech, highlighted 'insufficient supply of computing power and chips' as a bottleneck to AI progress. STORY CONTINUES BELOW THIS AD China has made AI a pillar of its plans for technological self-reliance, with the government pledging a raft of measures to boost the sector. In January, Chinese startup DeepSeek unveiled an AI model that performed as well as top US systems despite using less powerful chips. 'Defining test' In a video message played at the WAIC opening ceremony, UN Secretary-General Antonio Guterres said AI governance would be 'a defining test of international cooperation'. The ceremony saw the French president's AI envoy, Anne Bouverot, underscore 'an urgent need' for global action and for the United Nations to play a 'leading role'. Bouverot called for a framework 'that is open, transparent and effective, giving each and everyone an opportunity to have their views taken into account'. Li's speech 'posed a clear contrast to the Trump administration's 'America First' view on AI' and the US measures announced this week, said WAIC attendee George Chen, a partner at Washington-based policy consultancy The Asia Group. STORY CONTINUES BELOW THIS AD 'The world is now clearly divided into at least three camps: the United States and its allies, China (and perhaps many Belt and Road or Global South countries), and the EU – which prefers regulating AI through legislation, like the EU AI Act,' Chen told AFP. At an AI summit in Paris in February, 58 countries including China, France and India – as well as the European Union and African Union Commission – called for enhanced coordination on AI governance. But the United States warned against 'excessive regulation', and alongside the United Kingdom, refused to sign the summit's appeal for an 'open', 'inclusive' and 'ethical' AI.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store