On Tuesday, Honda Motor Company, Ltd. (NYSE:HMC) partnered with Amazon.com, Inc.'s (NASDAQ:AMZN) Amazon Web Services (AWS) to transition its automobiles into software-defined vehicles (SDVs).

Using AWS's compute, generative AI, and IoT capabilities, along with its data lake built on AWS, Honda will utilize the Digital Proving Ground (DPG) platform to develop SDVs.

This collaboration will help accelerate the delivery of new electric vehicle (EV) features and mobility solutions.

Honda is using AWS to accelerate the development of software-defined vehicles (SDVs) through its cloud-based Digital Proving Ground (DPG).

The platform collects real-time vehicle data, estimates EV range, tracks energy consumption, and delivers over-the-air updates.

By shifting design and testing to the cloud, Honda reduces reliance on physical hardware, cutting costs and speeding up development.

AWS IoT services help Honda enhance vehicle safety and autonomy by enabling continuous software updates and predictive maintenance.

Additionally, Honda plans to use Amazon Kinesis Video Streams to develop AI-powered video analytics that detect abnormal movements and alert drivers to potential risks.

Ozgur Tohumcu, director of Automotive and Manufacturing at AWS said, "Vehicles now function as intelligent, connected platforms on wheels, not just stand-alone machines. Generative AI will help automakers develop new features while bringing new models to consumers faster and more cost-effectively."

Investors can gain exposure to the stock via SPDR S&P Kensho Smart Mobility ETF (NYSE:HAIL) and The 2023 ETF Series Trust II GMO International Value ETF (NYSE:GMOI).

Price Action: HMC shares are down 0.33% at $30.21 premarket at the last check Wednesday.

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Image: Honda