Japanese telecom firm Nippon Telegraph and Telephone (NTT) has partnered with Toyota Motor to test driverless car technology, with plans to start testing autonomous buses and taxis by 2025.

NTT also announced plans to invest about JPY 10 billion (USD 67 million) in US startup May Mobility, a developer of autonomous shuttle services.

NTT will have exclusive rights to sell May Mobility's self-driving system in Japan from 2025 and plans to use the technology initially for community buses in local municipalities, with future expansion into taxi and other services, targeting over JPY 100 billion (approximately USD 670 billion) in sales by 2030.

Analyst QuickTake: Today’s news comes on the heels of Honda Motors announcing plans to establish a joint venture with General Motors and Cruise for a robotaxi service in Japan starting in early 2026. However, it's worth noting that Cruise suspended its US driverless robotaxi operations also in October due to a regulatory order following an accident. On a separate note, May Mobility has a track record of attracting investments from Japanese entities and so far counts investors such as Toyota Tsusho, Tokio Marine, and Toyota Ventures.