Honda and Nissan have announced plans to jointly run research into developing next-generation automobiles, known as software-defined vehicles, or SDVs.
Both companies released the details of the plan on Thursday. It follows on from their strategic partnership announced in March.
They said the research into building cars largely controlled by software may lead to mass production of such vehicles.
The partnership between two of Japan’s largest carmakers may also include sharing model specifications and the supply of batteries for electric vehicles.
It was also announced that Mitsubishi Motors, which is 34 percent owned by Nissan, will join the alliance.
US electric vehicle maker Tesla and China’s BYD are currently regarded as leaders in the SDV field, which requires enormous amounts of investment.
The Honda and Nissan partnership now joined by Mitsubishi is seen as a means to speed development of SDVs while sharing the cost.