This month, TIER IV joined innovators from across the world at SusHi Tech Tokyo 2025, one of Asia's largest startup conferences. From May 8-10, businesses spanning mobility, AI, telecoms, space, and more came together to showcase technologies shaping the cities of tomorrow. TIER IV’s robotaxi prototype attracted lots of attention, with hundreds of visitors hopping aboard for an up-close look at the future of mobility.
TIER IV also had a presence at KDDI’s booth, where team members shared details about our technology built around Autoware, open-source software for autonomous driving. During the event, CEO Shinpei Kato took the stage alongside industry leaders from Uber and Pony AI for a panel discussion on the evolution of autonomous driving, the situation in Japan, and the road ahead for full-scale deployment. Following are edited excerpts from Shinpei’s remarks during the session.
The term “autonomous vehicle” evokes different images for different people. Some think of robotaxis, while others imagine passenger cars. At TIER IV, we believe a common software platform can support a wide range of autonomous vehicles. We’re currently developing a robotaxi, but what sets our approach apart is that the technology can be adopted by other manufacturers. The same software can also be applied to larger vehicles, like buses.
Powered by TIER IV technology, the autonomous bus in the video has been certified to operate without a human driver. That’s what’s referred to as Level 4. The technology is advancing quickly, but when it comes to real-world deployment, safety has to come first. It’s the foundation for expanding operations. That’s why it’s great to be having conversations with Uber, one of the most successful tech companies, and Pony AI, a rising autonomous driving startup. Japan is an open country that welcomes global collaboration, and at TIER IV, we’re always interested in building relationships with partners around the world.
When it comes to technology, startups often lead the way by bringing cutting-edge innovations to market. But for a market to become feasible and sustainable, broader participation is essential. Open-source software, such as Autoware, plays a key role by lowering barriers to entry, enabling more players to join in and drive growth. We’ve seen this before in the history of software. The open-source operating system Linux is a good example. While Windows and Mac were growing, Linux helped expand the market further. Android did something similar for smartphones, making the market more accessible and sustainable. A more recent example is DeepSeek, an open-source large language model that attracted a huge amount of attention this year.
People now talk about three generations of autonomous vehicles. AV 1.0 is limited to specific areas but meets or exceeds human performance in those zones, like Pony’s robotaxis. AV 2.0 covers a wider area but still imitates human driving, like Tesla’s Autopilot. AV 3.0 combines the best of both, operating anywhere with advanced capabilities. I believe the true level 4 robotaxi or passenger car will fall into this category.
TIER IV CEO Shinpei Kato, right, speaks on a panel with Dom Taylor (Uber) and Ann Shi (Pony AI) at SusHi Tech Tokyo 2025.
Companies like Pony AI and Waymo are already showcasing cutting-edge robotaxis and proving that autonomous driving is no longer just a dream – it’s becoming a reality. What we want to do is create an ecosystem where other companies and organizations can participate, helping the market grow. Global competition and collaboration should go hand in hand.
More carmakers and suppliers will need to provide vehicles and components for autonomous driving services. Fleet operators and other service providers also need to be involved. We want to support stakeholders who may not fully understand the core technologies behind autonomous driving. By using open-source software, they can gain a better understanding of how they can contribute to the growth of the sector.
The Japanese government is pushing forward with autonomous driving technology amid a critically aging population. While regulations are a challenge, I don’t see them as a major bottleneck right now. Japan actually has very clear, well-defined regulations, which makes it easier to know what needs to be done. However, meeting those regulations requires evaluating development and operations across thousands of scenarios, and that can be time-consuming. The bigger challenge isn’t regulation, it’s cost and feasibility.
Moving from the proof-of-concept stage to commercial operations is a huge shift, and the cost issue will become increasingly apparent. As AV 2.0 and 3.0 will be more data-centric, we’ll need more data centers, storage, and machine learning, all of which are expensive and increase development costs. Then there’s fleet operation. While autonomous driving can reduce labor costs, there are still significant expenses tied to the technology. Right now, we’re focused on how to make the cost-performance ratio efficient.
Over the next 10 to 20 years, the way we use cars will inevitably change as they become capable of driving themselves. But there are also more immediate issues we need to address over the next 3 to 5 years, such as Japan’s aging society. I’m looking forward to a future where we can tackle these challenges not only with domestic companies, but through collaboration with global partners as well.
Japan needs to bring together startups, industry, academia, and the public sector to set clear goals for rolling out autonomous driving technology. The target is to have autonomous vehicles operating in 50 areas by 2025, and in 100 areas by 2027. Japan has about 1,700 municipalities so by the end of the decade, autonomous vehicles could be on roads nationwide. Achieving that will require open collaboration with global partners, and I believe Tokyo is leading the drive.
TIER IV is always on the lookout for passionate individuals to join our journey. If you share our vision of making autonomous driving accessible to all, get in touch.
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