TOKYO >> Honda Motor 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 Dec. 18 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 in remote areas as well as urban areas, where traffic situations are complex.
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 hybrids, since demand for the cars is expected to increase.
The company will start with a hybrid version of its Vezel sports utility vehicle (called Honda HR-V in the U.S.) as well as its Saloon EV in fiscal 2027. The automaker is considering installing the AI technology in its Kei 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, 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 onboard cameras.
In 2024, EVs accounted for slightly more than 1% of Honda’s domestic new car sales, excluding Kei cars. But hybrids exceeded 60%, indicating that introducing AI-powered autonomous driving technology to hybrids could provide a tailwind to the adoption of autonomous driving in Japan.
Competition in AI-powered self-driving technology is intensifying globally. EV giants such as Tesla in the U.S. and others in China are leading the world in practical application. In Japan, Nissan Motor is scheduled in fiscal 2027 to release a vehicle equipped with AI-powered self-driving technology.



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