Honda CEO says teaming up on car software makes more sense than going solo

Partnerships reduce software cost by sharing

Honda CEO Toshihiro Mibe declared on November 8, 2025, that building all software for a software-defined vehicle (SDV) alone is impractical. The primary reason is the rapid pace of change and the massive cost of development.

Honda is seeking alliances to share this financial risk and resource burden. Honda has trimmed its electrification and software investment plan by about 30%, from ¥10 trillion to ¥7 trillion through FY2031, to reflect slower EV uptake and focus spending on areas where partnerships can lower costs.

Honda changes 2030 EV sales forecast to 20%

This push for alliances is also due to changes in Honda’s sales predictions. During a business briefing on May 20, 2025, Honda lowered its 2030 global EV sales target to 20%, down from the original goal of 30%.

This change recognizes a slower market shift toward electric vehicles. The company plans to sell 2.2 million hybrid electric vehicles (HEVs) by 2030, a key number in its annual sales goal of over 3.6 million units.

Helm.ai deal focuses on advanced driver AI

A key partnership for technology is with Helm.ai, a California-based AI software startup. On August 20, 2025, the companies signed an agreement for Advanced Driver Assistance Systems (ADAS).

This ADAS will use a sophisticated end-to-end (E2E) AI architecture to control the car. The partnership uses Helm.ai’s generative simulation models to accelerate testing and perfect these features, building on Honda’s initial investment in 2022.

New ASIMO OS centralizes car computing

The new partnership requires powerful hardware and software. At CES 2025 on January 8, Honda revealed its new ASIMO OS, an original vehicle operating system for its upcoming cars.

0 Series models adopt a domain-centric E/E architecture integrating functions into three domain ECUs, with a roadmap to a centralized architecture. It will enable features like continuous over-the-air updates and personalization. This OS is the core of the “Wise” part of the 0 Series’s “Thin, Light, and Wise” design approach.

The software budget is 2 trillion yen over 10 years

Honda committed approximately 2 trillion yen (roughly $13.8 billion) to fund this new software focus for software development and research. This spending is set over the 10 years ending in March 2031.

This is part of a larger investment of 7 trillion yen. The company reduced its 10 trillion yen investment plan by 30% to reallocate funds toward core areas where shared development is most effective.

Nissan alliance covers both code and parts

Another major alliance is with Nissan. The companies began joint research on their software platform on August 1, 2024. The partnership aims to lower costs for both companies by sharing component designs.

This includes essential hardware, such as batteries and e-axles (electric motor components). This sharing strategy is crucial because developing a next-generation software platform is estimated to cost more than $10 billion.

New chip achieves 2,000 TOPS performance

To handle the advanced software, Honda needs powerful computer chips. At CES 2025, Honda and Renesas Electronics announced a new System-on-Chip (SoC) for the latest Honda 0 Series.

This chip is designed to achieve an incredible AI performance of 2,000 TOPS (Tera Operations Per Second). The powerful chip will use advanced 3-nanometer automotive process technology, supporting the complex Level 3 automated driving planned for the global 0 Series.

ADAS Level 3 goals for 2027 HEV models

The software alliances are directly linked to Honda’s goal of improving safety across its product line. The company is developing and testing Level 3 automated driving features.

These features will debut on 13 new hybrid electric vehicle (HEV) models and EVs starting around 2027. This broad application is crucial for reducing global traffic collision fatalities involving Honda vehicles by 50% by 2030.

New 0 Series launches 7 models by 2030

The new software powers a new generation of cars, the Honda 0 Series. Honda plans to launch seven models in the 0 Series globally by 2030. The first model, the 0 Saloon sedan, will launch in North America in the first half of 2026.

This EV line is built on a “Thin, Light, and Wide, design philosophy, featuring an ultra-thin battery pack for a low height of under 57 inches.

Battery degradation limited to 10% in 10 years

Long-term battery health is another crucial fact that the new software and battery technology enable. Honda announced at CES 2025 that the high-density battery packs in the 0 Series will limit degradation to less than 10% over 10 years of use.

This is a significant number for customers. Furthermore, the new battery can achieve a fast-charge time from 15% to 80% in just 10–15 minutes, improving the ownership experience.

Safety code used on 2.2 million hybrid cars

Honda is not limiting its advanced safety software to just new electric cars. The company plans to use the shared, advanced code, like the E2E AI from Helm.ai, on new EVs and the 2.2 million hybrid electric vehicles (HEVs) it plans to sell by 2030.

This strategy of equipping millions of cars with the best technology, rather than just a few, is the most efficient way to reduce accidents for the most significant number of customers.

Want to see why Honda’s revived sports car is speeding off dealer lots? Read more about the new Honda Prelude, which sells faster than Honda expected.

Zero traffic fatalities is the 2050 target

The ultimate goal of the CEO’s software-sharing strategy is safety. The company believes that common, advanced software is the quickest way to achieve its final goal: zero traffic collision fatalities globally by 2050.

By deploying reliable, intelligent systems developed through partnerships, Honda can efficiently deliver its safety promise across its fleet of new vehicles, including the 0 Series and new HEV models.

Curious how Honda’s top SUV blends space and efficiency? Check it out in Honda CR-V Hybrid combines utility with fuel economy.

Is collaboration the key to smarter cars? Share your thoughts below.

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This slideshow was made with AI assistance and human editing.