Isuzu Motors and local autonomous driving technology company Tier IV have agreed to strengthen their collaboration to develop autonomous driving systems for public transport buses.

The medium and heavy commercial vehicle maker would invest JPY60bn (US$40m) in Tier IV which it describes as a pioneering force behind Autoware, said to be the first open source software for autonomous driving.

The company said it would step up development and deployment of Level 4 autonomous driving specifically for route buses.

The pair would combine Tier IV’s software with Isuzu data and expertise in route buses to develop vehicles and systems compatible with Level 4 autonomous driving.

Isuzu said it would deliver comprehensive packages to bus operators, offering route buses equipped with autonomous driving systems to help address the shortage of drivers in Japan.

Isuzu expected development and widespread adoption of autonomous driving would also drive future growth.

Last year, Isuzu said it would spend JPY1trn (US$6.8bn) by 2030 on carbon neutrality and logistics DX (Digital Transformation).

The automaker said: “As the shortage of drivers in the logistics and public transportation sector intensifies, [we believe] the development and widespread adoption of autonomous driving technology, which underpins DX for logistics, will address these societal challenges and also act as a key driver for future business."