Toyota Motor will introduce self-driving technology in passenger vehicles in 2028, the automaker said on August 27th, with plans to develop its own Level 2++ system requiring minimal driver input.

Toyota plans to expand the technology to more models from 2030. In Japan, current autonomous driving systems are generally limited to Level 2, which requires drivers to take over in certain situations. Toyota is developing more advanced capabilities.

For commercial vehicles, the company is targeting Level 4 technology by 2030, which would enable fully autonomous driving under specific conditions, and plans to expand deployment nationwide from 2030.

Toyota also confirmed that it plans to equip its e-Palette electric vehicle, which debuted in 2025 and can be used as a shuttle bus, with Level 4 driving technology as early as fiscal 2027.

Japan legalised Level 4 autonomous driving in 2023. The government has set a target of increasing the number of Level 4 self-driving buses, taxis and other vehicles to 10,000 nationwide by fiscal 2030. Toyota said it is considering entering the robotaxi business with Waymo, the autonomous driving unit of Google parent Alphabet, although the automaker did not disclose a timeline.

Toyota does not plan to rely solely on the end-to-end approach employed by companies such as Tesla, in which artificial intelligence handles environmental recognition, driving decisions and vehicle operation.

It will also use a "guardrail" system to monitor and block unexpected AI behaviour based on predefined, human-designated rules. Toyota said the approach could improve safety and prevent roughly 60% of current traffic fatalities and injuries.

Several automakers are developing self-driving technology. Honda Motor launched a Level 3 vehicle in 2021 that can drive autonomously under limited conditions and continues to develop the technology. Nissan Motor announced in April that it would install AI-powered autonomous driving technology in 90% of its models.

"We'll develop Level 4 technology from a technical standpoint, but offer it commercially as Level 2++," said Akihiro Sarada, head of Toyota's Software Development Center. "We'll proceed in a way that ensures both safety and explainability based on the technology."

US and Chinese automakers currently account for a significant share of self-driving vehicle development, while Japanese automakers are also developing the technology. The Japanese government has set a target of securing a 30% global market share in autonomous vehicle sales in the 2030s. Japan's transport ministry plans to establish a certification system for Level 2++ vehicles this year.