Japan Autonomous Taxi Subsidies Planned for Fiscal 2027

Japan Plans Autonomous Taxi Support From Fiscal 2027

Japan autonomous taxi subsidies are set to begin in fiscal year 2027 as the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) moves to support the introduction of vehicles meeting specific performance standards. The government plans to subsidize part of the introduction costs for qualifying vehicles as it seeks to address driver shortages and preserve regional transportation networks. Japan has also established a broader target of having 10,000 autonomous service vehicles, including buses and taxis, in operation by fiscal year 2030. MLIT presented its preliminary fiscal 2027 budget request to relevant ruling-party committees on August 27.

Level 2++ Certification Will Determine Eligibility

MLIT plans to establish a certification system within fiscal year 2026 for “Level 2++” technology, an advanced driver-assistance system designed to require minimal driver intervention. The certification process will assess whether vehicles can operate safely through actual road testing, with only vehicles satisfying the required standards becoming eligible for government subsidies. This approach links financial support directly to demonstrated operating capability rather than providing assistance without a defined performance threshold. The planned framework is intended to support the practical deployment of autonomous driving technology while maintaining safety requirements for real-world transportation services.

Nissan and Wayve Technology Target Fiscal 2027

Nissan Motor Co Ltd plans to launch a vehicle in fiscal year 2027 incorporating software from Wayve Technologies Ltd, a UK-based artificial intelligence startup. MLIT has defined the technology as equivalent to Level 2++, making the planned vehicle relevant to the ministry’s forthcoming certification framework. The development connects an automaker’s planned vehicle program with an emerging AI-based driving technology and Japan’s proposed subsidy mechanism. Japan is simultaneously seeking broader autonomous transportation deployment to help maintain mobility services as driver shortages place increasing pressure on regional transportation networks.

Frequently Asked Questions

When will Japan begin supporting autonomous taxis?
Japan is scheduled to begin providing support for autonomous taxis in fiscal year 2027, with subsidies covering part of the introduction costs for vehicles that satisfy specified performance requirements. Before subsidies become available, MLIT plans to establish a Level 2++ certification system within fiscal year 2026. Vehicles will undergo actual road testing to verify safe operation, and only those meeting the certification standards will qualify. The policy supports Japan’s broader goal of deploying 10,000 autonomous service vehicles, including buses and taxis, by fiscal year 2030.