Japan Boosts Efforts to Develop Cloud-Managed Smart Cars

Japan is intensifying efforts to develop smart cars featuring cloud-managed safety and entertainment systems to rival advancements by Chinese and US automakers. Aiming to capture 30% of the global market for software-defined vehicles (SDVs) by 2030, the Japanese government predicts that worldwide sales will reach 35 to 41 million units by that year.

The Ministry of Economy, Trade and Industry (METI) will support this initiative by providing financial aid and partnering with universities for re-skilling courses targeting IT engineers. The focus is on creating an ecosystem for data sharing and after-sales service profitability as the automotive business model evolves.

Key initiatives include Nissan’s autonomous vehicle ride-share service slated for 2027 and Honda’s aim to start a self-driving taxi service by the end of the decade. Japan’s recent formation of the Automotive and Battery Traceability Center Association aims to secure safe data circulation within the auto and battery supply chain, enhancing the industry’s competitiveness.