Toyota Motor Corp. and Alphabet Inc.’s Waymo are joining forces to develop autonomous-driving technology, potentially helping the Japanese automaker catch up with rivals like Tesla Inc. and BYD Co.
The companies, along with Toyota’s Woven technology division, plan to create a new autonomous-driving platform and enhance next-generation personally owned vehicles, according to their joint statement Wednesday.
This collaboration comes as Toyota has struggled to keep pace in the rapidly evolving autonomous driving sector despite years of investment. The company’s Woven unit, responsible for developing its Arene software, faced setbacks following a 2023 management restructuring.
For Waymo, currently handling over 250,000 weekly trips across several U.S. cities, the partnership represents its first venture beyond commercial ride-hailing into the personal vehicle market.
Toyota previously announced a ¥500 billion ($3.3 billion) joint investment with Nippon Telegraph & Telephone Corp. to develop AI-based autonomous-driving software designed to predict and respond to traffic incidents.
The partnership follows similar moves by Toyota’s Japanese competitors, with Nissan Motor Co. recently partnering with UK-based Wayve and Suzuki Motor Corp. collaborating with startup Tier IV.
Regulatory challenges remain significant obstacles for autonomous driving technology globally, particularly in Japan, where vehicles still require human oversight and intervention.
