Nissan Motor Co., Ltd. NSANY has unveiled its latest breakthrough in autonomous driving by successfully testing a driverless vehicle on a public road in Japan for the first time. The specially equipped Serena MPV navigated Yokohama’s Minato Mirai district, which marks Nissan’s significant step toward its goal of launching a mobility service in the country. 

The test vehicle is outfitted with 14 cameras, nine radars and six Lidar sensors. The elevated positioning of the sensors on the Serena’s roof improves detection accuracy compared with previous models. Enhanced artificial intelligence capabilities further refine recognition, behavioral prediction, decision-making and overall vehicle control, ensuring smooth operation in complex environments.

Japan is pushing to catch up with global leaders in autonomous driving, such as Alphabet Inc.’s GOOGL Waymo, which plans to enter the Japanese market this year. Waymo has partnered with major taxi operator Nihon Kotsu to manage a fleet of self-driving electric Jaguar I-PACE SUVs, initially operating in Tokyo with a human driver onboard. Although Nissan’s Serena test vehicle is still classified as Level Two autonomy since a remote operator at headquarters can intervene if needed, it is steadily advancing self-driving technology. A human passenger is also present in the test rides, though they do not actively control the vehicle unless necessary.

Since 2017, Nissan has been refining its autonomous driving systems. This year and next, the company will conduct service demonstration tests using around 20 vehicles in Yokohama. Nissan is also working with municipalities and transportation partners to develop an operational framework with plans to introduce autonomous mobility services by fiscal 2027, supported by remote monitoring. NSANY currently carries a Zacks Rank #3 (Hold). 

As Japan faces a declining population and a shortage of drivers, autonomous vehicles could provide a valuable transportation solution. Several companies, including startups like Tier IV, are also advancing self-driving technology in the country. Currently, Japan has only approved Level Four autonomous vehicles in limited areas, such as slow-moving shuttle services in Fukui Prefecture and near Tokyo’s Haneda Airport. Nissan’s self-driving Serena, however, is a fully functional vehicle capable of normal road speeds.

Toyota Motor Corporation TM is also investing in autonomous technology. The company recently showcased its prototype "city" near Mount Fuji, designed for testing various technologies, including autonomous driving. Nissan maintains that its technology is safe, as sensors provide full 360-degree awareness, something a human driver cannot do. During a recent test, when a system error occurred, the vehicle automatically came to a stop, demonstrating its built-in safety measures.

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