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23 October 2023

Daily Newsletter

23 October 2023

Cruise, GM and Honda form JV for driverless ride-hail in Japan

Set to begin in early 2026

Dani Cole October 20 2023

GM’s robototaxi unit, Cruise, has announced it has entered into a MoU with General Motors and Honda to establish a joint venture. It will provide a driverless ride-hail service in Japan beginning early 2026.

Cruise is already offering limited ride services in San Francisco.

The service, called Cruise Origin, will be co-developed with GM and Honda for Japanese customers. The autonomous vehicle will be able to carry up to six passengers.

Roughly 500 Origins will be manufactured by GM at Factory SERO Detroit-Hamtramck Assembly plant in Michigan.

Cruise CEO Kyle Vogt said: "In addition to societal impact, the business opportunity is also exciting, as Japan represents one of the largest potential autonomous vehicle ridehail markets in the world.”

Toshihiro Mibe, Global CEO of Honda said: "Honda is striving to create the 'joy and freedom of mobility.'” He also added that offering this service in central Tokyo, where the traffic environment is “complex” will be a “great challenge.” According to Tokyo Metropolitan Government, Tokyo prefecture has a population density of 6,158 persons per square kilometre. 

Pending government approvals, initial testing will begin in 2024 and commercialisation will begin in central Tokyo in early 2026.

The three companies plan to subsequently expand and scale the service to areas outside of central Tokyo.

Per GlobalData estimates, smart parking market expected to grow at a CAGR of 13.2% by 2030

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