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Japanese car manufacturers collaborate on software development; Aim to compete with US and China in SDV market


REUTERS/file photos
From left to right the logo of Honda Motor Co., Nissan Motor Corp. and Toyota Motor Corp.

Three major Japanese automakers, Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co., have reached an agreement to advance cooperation in automotive software development, The Yomiuri Shimbun has learned. They will consider standardizing specifications for car computer functions such as opening windows and moving windshield wipers.

Suzuki Motor Corp. will work with major chip manufacturers and communications companies in the 2024 budget year to develop software for autonomous driving and map information. Japanese companies are accelerating such cooperation to compete with leading American and Chinese manufacturers in automotive technologies.

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


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The three automakers will standardize the basic platform for an application programming interface (API), which serves as a 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 companies to participate in the development and is expected to strengthen Japan’s competitiveness.

The ministry is pushing for the development of Software Defined Vehicles (SDVs), next-generation cars that can add new features and improve capabilities by updating software over the Internet. To boost the development of SDVs, the ministry will launch the so-called Mobility DX Platform together with major car manufacturers. The software collaboration is one of the projects of this platform. Toyota, Honda and Nissan are also looking to collaborate on self-driving technology in the future.

The ministry will also strengthen human resource development. It will add SDVs to guidelines for human resource development in digital areas and nurture talented workforce well-versed in automotive software by offering courses. Collaboration with educational institutions such as universities will also be promoted.

The United States and China have taken the lead in SDV. The American electric car giant Tesla Inc. was the first company to launch SDVs, which allowed the company to make money even after selling the cars. China has boosted the development of advanced technologies by standardizing APIs in its automotive industry since 2021.

The Japanese government is reinforcing its sense of urgency regarding this situation. In May, it set out a strategy for the digitalization of the automotive sector. Japan aims to secure a 30% share of the global SDV sales market and is pushing for cooperation among domestic companies to achieve this goal. For next-generation vehicles such as SDVs, software superiority is directly related to competitiveness, prompting a concerted effort by the public and private sectors to regain ground.

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