Honda Motor Co. and General Motors Co. said Thursday they will launch a driverless taxi joint venture that will be operational by early 2026 in Tokyo, as the auto industry rapidly shifts to vehicles that use autonomous and zero-emission technologies.
The two automakers, along with GM's autonomous driving car unit called Cruise, will set up the venture in 2024 in Japan with Honda taking a majority stake. The ride-hailing service will use self-driving Cruise Origin electric vehicles jointly developed by the three partners, the automakers said.
The venture will start in central Tokyo with a few dozen EVs and is set to become the first driverless taxi service to operate in urban areas in Japan. It will then later be expanded beyond the central capital, with the fleet boosted to about 500 EVs.
The vehicles, without a driver's seat or steering wheel, feature spacious cabins with two rows of seats allowing up to six passengers to sit face-to-face. Customers will use a dedicated smartphone app to hail and pay.
"The self-driving taxi service will offer a new transportation option that people have never experienced," Honda President Toshihiro Mibe said at a press conference. "We will offer freer and more meaningful human mobility."
Advanced technologies and new automobile services are increasingly vital for global automakers at a time when vehicles are expected to become more connected, autonomous, shared and electric, known as CASE.
Japan has been falling behind in introducing driverless taxis. The United States and China -- the world's two biggest auto markets -- are among the front runners, with driverless taxi services being already available in some parts of both countries.
Japan is grappling with driver shortages in the transportation sector. Bus and train operators are scaling back their services in rural areas in particular, with the number of taxi drivers also dwindling following the COVID-19 pandemic.
The Cruise Origin vehicles will be classified as Level 4 autonomous driving vehicles, the second highest of five scales for the technology. Level 4 means the vehicles are fully automated under certain conditions.
"Japan is famous for its quick embrace of new technologies. With Honda's leadership in the region, we are confident these vehicles can be safely deployed for consumers," GM CEO Mary Barra said while attending the press conference online.
Honda and GM agreed in 2018 to jointly develop self-driving vehicles and the Japanese carmaker launched a vehicle test on public roads this year in Tochigi Prefecture for a self-driving taxi service.
Honda will display its Cruise Origin at the Tokyo auto show, scheduled to open to the media on Oct. 25 and to the public from Oct. 28.
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