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Japanese Automakers Unite on Software to Compete in SDV Market with US, China

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Toyota Motor Corp., Honda Motor Co., and Nissan Motor Co. have agreed to collaborate on developing in-car software, according to The Yomiuri Shimbun. The automakers are considering standardizing specifications for car computer functions, such as window operation and wiper control.

Suzuki Motor Corp. will work with major chip manufacturers and communications enterprises to develop software for autonomous driving and map information within fiscal 2024. Japanese companies are accelerating such collaboration to compete against leading U.S. and Chinese manufacturers in automotive technologies.

Executives of the automakers and officials of the Economy, Trade, and Industry Ministry plan to explain the policy on Thursday at the Japan Mobility Show (formerly the Tokyo Motor Show) at the Makuhari Messe in Chiba City.

The three automakers will standardize the basic platform for an application programming interface (API), which serves as the link between the software and other systems, allowing a variety of software from the three automakers to be installed. This makes it easier for other software firms to participate in development and is expected to strengthen Japan’s competitiveness.

The ministry is advocating for the development of Software Defined Vehicles (SDVs), next-generation cars that can gain new features and improve capabilities through internet-based software updates. To accelerate SDV development, the ministry will introduce the Mobility DX Platform in collaboration with major automakers. The software partnership is a key initiative under this platform. Additionally, Toyota, Honda, and Nissan are considering future cooperation in the area of self-driving technology.

The ministry also will strengthen the development of human resources. It will add SDVs to guidelines on the development of human resources in digital fields and nurture talented personnel who are well-versed in automotive software by providing courses. Collaborations with educational institutions such as universities will be promoted as well.

The United States and China have taken the lead in the SDV field. U.S. electric vehicle giant Tesla Inc. was the first company to launch SDVs, which enable the company to earn money even after selling the cars. China has boosted the development of leading-edge technologies by standardizing API in its automobile industry since 2021.

The Japanese government is heightening its focus on the issue, having developed a strategy for automotive digitalization in May. Japan aims to capture a 30% share of the global SDV sales market, pushing for collaboration among domestic companies to achieve this target. As software plays a crucial role in the competitiveness of next-generation vehicles like SDVs, the public and private sectors are joining forces in a unified effort to regain their competitive edge.

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