Japan’s plan to dominate software-defined vehicles

Japan’s Ministry of Economy, Trade and Industry (METI) has issued a digital transformation (DX) roadmap that aims for Japanese automakers to take 30% of the global market for self-driving software-defined vehicles (SDVs) by 2030.

SDVs are cars whose functions update regularly via the internet, similar to computer programs and smartphone apps.

In METI’s estimation, 30% of the global market would be 11-12 million vehicles in 2030 and 17-19 million by 2035. By comparison, Toyota, produced 10.8 million vehicles in 2023. Toyota, Honda and Nissan combined produced 18.3 million.

The METI roadmap covers electric vehicle hardware, software and infrastructure, the application of generative AI for autonomous driving, a globally compatible data service, cybersecurity measures, scenario planning and business models for robo-taxis and self-driving trucks.

A new program to promote the training of engineers and other relevant human resources is scheduled to begin later this year. By 2035, METI plans to establish a “Mobility DX Platform” with the participation of the auto and related industries, start-ups, universities, research institutions and knowledgeable individuals.

This will be a continuation of JASPAR (Japan Automotive Software Platform and Architecture), which was established in 2004 to enable the standardization of in-vehicle electronic control systems and software.

The idea is to boost collaboration between companies, increase competition to secure software talent and accelerate the number of new projects, all toward the aim of building a “community” or eco-system for the development and practical use of digital mobility technologies.

In a statement released on May 24, METI notes that digital technology is bringing major