Japanese firms tap self-driving tech to ease driver shortage

Amid a nationwide driver shortage in Japan, major companies like Toyota and NTT Docomo are accelerating efforts to introduce autonomous driving on local public bus routes. The technology is also being developed for shuttle services at events and leisure facilities. Achieving Level 4 autonomy—fully unmanned driving under certain conditions—hinges on robust safety measures and cost reductions.

Japan faces a severe nationwide shortage of drivers due to its aging population. In response, automakers like Toyota, telecommunications giants such as NTT Docomo, and startups are intensifying efforts to deploy autonomous driving on local public bus routes.

These companies are advancing not only vehicle technologies but also artificial intelligence (AI) for driving control and the supporting communications infrastructure. The developments target shuttle services for events and leisure facilities.

The goal is Level 4 autonomy, enabling fully unmanned operation under specific conditions. Broad adoption depends on establishing stringent safety measures and reducing costs. These initiatives could help alleviate transportation challenges in rural areas.

(This article draws solely from verified source facts.)

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A Tesla robotaxi with a human safety driver operates on a Phoenix street, illustrating the company's new supervised service permit in Arizona.
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Tesla secures Arizona permit for supervised robotaxi service

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Tesla has received approval from the Arizona Department of Transportation to operate a paid ride-hailing service in the state, expanding its supervised robotaxi program from Texas and California. The permit requires human safety drivers in all vehicles, marking a step toward broader deployment but not yet full autonomy. This development allows testing in metro Phoenix while competitors like Waymo operate more advanced driverless services.

The United Nations plans to establish safety regulation standards for level 4 automated driving, where the system handles all vehicle operations under specific conditions. These standards will require the automated driving system to match the safety of highly skilled drivers and mandate devices to record running conditions. The U.N. aims to finalize the regulations by June 2026.

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Waymo-backed robotaxis are quietly operating on Tokyo's streets as tests continue. The trials, conducted by Japanese taxi firm Nihon Kotsu in partnership with the California-based Waymo, could see a service rollout in Japan by 2026, though no firm date has been set.

More than 40% of top executives at major Japanese companies expect their workforce to shrink over the next decade due to generative AI, according to a Yomiuri Shimbun survey. Over 30% already incorporate the technology into management decisions, though many caution against full reliance for ethical, safety, or complex issues.

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Tesla has secured a Transportation Network Company permit from Arizona regulators, allowing the company to launch a paid autonomous ride-hailing service in the state. The approval, granted on November 17, 2025, follows an application submitted on November 13 and marks the final regulatory step for commercial operations. Arizona's supportive environment for autonomous vehicles positions it as a key expansion area for Tesla.

China on Monday approved two electric sedans equipped with level-3 autonomous driving for public roads, marking the first such allowance. The models, developed by Changan Automobile and BAIC Motor's Arcfox, can operate autonomously under specific conditions in Chongqing and Beijing.

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Tesla began unsupervised robotaxi testing in Austin, Texas, on December 14, 2025, with empty Model Y vehicles navigating public roads, as confirmed by CEO Elon Musk. This milestone follows supervised trials since June and aims to challenge Waymo, despite recent crashes and regulatory hurdles.

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