Toyota Motor Corp. and NTT Corp. are joining forces to develop AI-driven automotive software that could push Japanese companies back into the autonomous driving race dominated by Tesla Inc. and Chinese manufacturers, Nikkei reported.
The partnership will invest 500 billion yen ($3.3 billion) to create a system capable of Level 4 or Level 5 autonomous driving by 2028. The technology will analyze real-time data from vehicle cameras and sensors to predict potential accidents and automatically control steering and braking functions.
The system will utilize NTT’s IOWN technology, which uses light instead of electrical signals for faster data transmission. The companies plan to offer the technology to other automakers once developed.
The collaboration comes as Japan plays catch-up in advanced autonomous driving. While Toyota’s Mirai currently offers hands-free driving capabilities, most vehicles on the road only achieve Level 2 autonomy, requiring constant driver supervision.
Industry forecasts from S&P Global suggest Level 2 autonomous vehicles will represent more than half of global new car sales by 2030, reaching approximately 50 million units. Level 4 vehicles are expected to account for about 5 million units by 2035.
This latest venture builds on the companies’ existing partnership, which began with 5G connected car development in 2017 and expanded through a capital alliance in 2020.
