TOKYO (AP) — Japanese automakers Nissan and Honda entered a deal to jointly develop computer parts and software for vehicles set to enter the market in fiscal 2029, both sides said Monday.

Under the deal, Nissan, based in the port city of Yokohama, and Tokyo-based Honda will share standardized parts in “core ECUs,” or electronic control units, as well as software.

Nissan and Honda started talks in 2024 to work together in developing electric vehicles and auto intelligence technology.

Nissan makes Leaf electric cars and Infiniti luxury models, while Honda makes the Accord sedan, Civic compact and Odyssey minivan.

Monday’s agreement did not specifically mention EVs, or any model names, and was focused on so-called software-defined vehicles, which could include EVs. These vehicles have functions and features that can be updated and controlled by software, rather than the mechanics of hardware.

The global competition in the auto industry is increasingly intensifying as it moves into various technologies, such as automated driving and zero emissions. Each vehicle is starting to be more like a computer packed with electronic parts and software rather than the old image of the gas-guzzling engines.

Sharing components and collaborating on research will help cut costs and speed up development, as well as add efficiency in economy of scale once the vehicles go into production.

European makers Volkswagen, BMW, Mercedes-Benz and Stellantis are working together in software development so they can share the same operating system.

Both Nissan and Honda are overshadowed by Toyota Motor Corp., the top Japanese automaker, and working together could be a plus in competing against Toyota.

However, Toyota has been mentioned in the past as engaging in the software talks with Nissan and Honda, although it was not part of Monday’s announcement.

Toyota is working on software with other companies like Subaru, which is part of the Toyota group, and U.S. autonomous driving technology company Waymo.

As part of their strategic partnership, Nissan and Honda will continue to explore other opportunities for collaboration across a range of areas, including zero-emissions and decreasing traffic fatalities.

Both sides stressed that the use of intelligence and electrification technology is an important focus for working together.

“Recognizing the need to strengthen competitiveness through faster development cycles and more efficient investment, the two companies have conducted extensive studies on potential collaboration in the software domain,” they said in a statement.

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Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama

Yuri Kageyama, The Associated Press