Honda to Release AI-Equipped Autonomous HV, EV in Fy27 with Technology Developed with U.S. Startup

The Yomiuri Shimbun

17:50 JST, December 12, 2025

Honda Motor Co. is set to release a hybrid vehicle model and electric vehicle model equipped with AI-powered self-driving technology in Japan in fiscal 2027, the Japanese automaker revealed Thursday at a meeting with dealers.

The company cooperated with a U.S.-based AI startup to develop an original autonomous driving system that enables vehicles to operate even in urban areas, where traffic situations are complex, and remote areas.

Currently, U.S. and Chinese companies lead the world in the field of AI-equipped autonomous EVs. Honda intends to catch up by installing its AI-powered self-driving technology in HVs, as demand for such cars is expected to increase.

The company will start with a hybrid version of its Vezel sports utility vehicle as well as its Saloon EV in fiscal 2027. The automaker is also considering installing the AI technology in its kei lightweight cars and models sold in the U.S. market.

The self-driving system combines Honda’s know-how with AI technology developed by U.S. startup Helm.ai Inc, which Honda has invested in.

Although the system requires driver supervision, the AI steers and accelerates the vehicle after assessing its surroundings through data obtained by on-board cameras.

As the system does not require the high-precision 3D maps needed by conventional autonomous driving systems, it is expected to reduce costs.

“You can experience the feeling of having a car automatically take you to your destination,” Honda President Toshihiro Mibe said at the meeting.

AI-powered self-driving technology is generally regarded as more applicable to EVs than gas vehicles, as EVs primarily rely on electronic control. However, the technology Honda has developed operates on HVs, which have internal combustion engines, paving the way for mass-production.

In 2024, EVs accounted for slightly more than 1% of domestic new car sales, excluding kei cars. HVs, on the other hand, exceeded 60%, meaning that the introduction of AI-powered autonomous driving technology to HVs could be a tailwind to the adoption of autonomous driving in Japan.

Competition in AI-powered self-driving technology is intensifying in Japan and abroad. EV giants such as Tesla Inc. in the United States and others in China are leading the world in practical application. In Japan, Nissan Motor Co. is scheduled to release a vehicle equipped with AI-powered self-driving technology in fiscal 2027.