NTT partners with Toyota to test driverless vehicle tech

Japanese telecommunications company Nippon Telegraph and Telephone (NTT) has unveiled plans to engage in testing driverless vehicle technology in collaboration with Toyota Motor. Additionally, NTT intends to invest approximately 10 billion yen (about $66.91 million) in May Mobility, a US startup specialising in self-driving systems.

The testing of autonomous buses and taxis is expected to commence as early as 2025, indicating the growing impetus for self-driving technology in Japan. Although initial reports suggested that NTT and Toyota would jointly develop vehicles, both companies have clarified that such collaborative development is not part of their current plans. Toyota has not provided further comments on this matter.

May Mobility has previously attracted investments from Japanese entities. In the past, insurer Tokio Marine participated in a $111 million funding round for the Michigan-based startup, and a Toyota-linked venture capital unit co-led a seed investment in the company back in 2018.

NTT's increasing involvement in autonomous driving technology aligns with the broader trend in the industry. Honda Motor recently announced its intentions to establish a joint venture with General Motors and its autonomous taxi firm, Cruise, with plans to initiate a driverless ride service in Japan in early 2026. However, Cruise temporarily suspended its driverless vehicle operations in the United States following a regulatory order in California prompted by an accident.

(With Reuters inputs)