Japanese automakers Nissan and Honda have agreed to jointly develop computer components and software for vehicles expected to enter the market in fiscal 2029, the companies said Monday.

Under the agreement, Yokohama-based Nissan and Tokyo-based Honda will share standardized components for core electronic control units, or ECUs, as well as software.

The two companies began discussions in 2024 on cooperation in electric vehicles and automotive intelligence technology. Their latest agreement focuses on software-defined vehicles, whose functions and features can be controlled and updated through software rather than hardware. The announcement did not mention specific vehicle models or electric vehicles.

The global auto industry is increasingly shifting toward technologies such as automated driving, electrification and zero-emission vehicles, making cars more dependent on electronic systems and software.

The companies said sharing components and jointly conducting research could reduce costs, speed up development and create greater efficiency through large-scale production.

European automakers Volkswagen, BMW, Mercedes-Benz and Stellantis are also cooperating on software development and shared operating systems.

Nissan and Honda, both smaller than industry leader Toyota Motor Corp. in Japan, believe closer cooperation could strengthen their competitiveness.

The companies said they would also explore cooperation in areas including zero-emission technology and reducing traffic deaths.

Both stressed that faster development, efficient investment, electrification and intelligent vehicle technology would remain key priorities of their strategic partnership.