The race to develop autonomous vehicles (AVs) is entering an exciting phase. Automakers and tech giants alike are pouring billions into self-driving technology. Japanese auto giant Nissan Motor Co. NSANY began demonstrations of its next-generation ProPILOT advanced driver-assist technology in Tokyo this month. Importantly, Nissan also sees autonomous technology as a response to Japan’s shrinking driver pool, with plans to roll out an autonomous ride-share service by 2027.
Inside Nissan’s Push Toward Smarter Assisted Driving
The upcoming system, scheduled for launch in Japan in fiscal year 2027, combines Nissan’s own “Ground Truth Perception” with the “Wayve AI Driver” software developed by UK-based startup Wayve. Unlike earlier ProPILOT versions, which were limited mostly to highways, the new version is being designed for real-world city conditions.
Nissan’s demo fleet is based on the Ariya electric SUV, fitted with 11 cameras, five radar sensors, and a next-generation LiDAR unit. The AI is built not just to detect single objects but to understand how entire scenes evolve, much like an attentive driver. That means quicker decision-making, smoother navigation and greater adaptability in crowded environments.
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The company believes this leap will put its technology on par with Tesla’s TSLA Full Self-Driving (FSD) system. However, ProPILOT will remain at Level 2 autonomy, requiring constant driver supervision. Tetsuya Iijima, general manager of Nissan’s assisted-driving technology engineering department, said the company believes its system is “smarter than Tesla’s FSD, though not yet as polished,” as reported by Business Standard.
This push underscores Nissan’s effort to gain relevance in the electric and autonomous space, as rivals in the United States and China are chasing the goal of autonomous driving.
Alphabet’s Progress with Waymo
In the United States, Alphabet’s GOOGL Waymo is the leader in robotaxi deployments. It already runs fully driverless Level 4 services in cities such as Phoenix, Los Angeles, San Francisco, Austin and Atlanta. More recently, it expanded into Denver and Seattle. Waymo delivers around 250,000 paid rides every week, a scale far beyond its competitors.
That’s way ahead of Nissan’s ambitions for now. Waymo’s technology is built on years of data collection and simulation, giving it a significant advantage in real-world testing. Backed by billions of dollars from Alphabet and partnerships with automakers and ride-hailing platforms, Waymo has quietly built a wide lead.
Amazon Backs Zoox for Robotaxi Ambitions
Amazon AMZN, meanwhile, has made a different kind of bet with its AV company, Zoox. Rather than retrofit existing cars, Zoox has designed a fully autonomous, purpose-built robotaxi from scratch. With no steering wheel or driver’s seat, the Zoox vehicle represents Amazon’s long-term vision of mobility-as-a-service.
Zoox has already begun limited testing in Las Vegas and California, though widespread deployment remains years away.Following the launch in Las Vegas, the company plans to take its service to San Francisco later this year and has Austin and Miami on its roadmap. Testing is already underway in Los Angeles, Atlanta and Seattle. With its fresh approach to design and strong backing from Amazon, Zoox is positioning itself as a challenger to companies like Waymo and Tesla.
Tesla Robotaxi and AV Vision
Tesla’s FSD package is available to customers in beta, and while it can handle many driving tasks, it still requires human oversight at all times. Yet Tesla holds an advantage in scale. With hundreds of thousands of vehicles on the road running FSD, it gathers unmatched volumes of real-world data.
Within three months of launching its robotaxi service in Austin in June, it has quickly expanded to California, Nevada and Arizona.While safety monitors are in place, progress toward Musk's bold autonomous vehicle vision is moving well. Tesla also recently proposed a massive $1 trillion pay package for Musk, linking it to bold targets, including 10 million Full Self-Driving subscriptions and 1 million robotaxis in commercial use.
China Surges Ahead
China is racing ahead with deployments. Companies like Baidu’s Apollo Go and Pony.ai already operate commercial driverless ride-hailing services in Beijing, Shanghai, and other cities. Backed by government support and favorable regulations, these firms are testing Level 4 technology at scale, positioning China as the global leader in robotaxi adoption. Chinese firms are even expanding abroad, with Middle Eastern cities becoming test grounds for their services.
The Road Ahead
The dream of full autonomy may still be years away, but progress is undeniable. For Nissan, the new ProPILOT system is more than just a product—it is a statement of intent. Companies are steadily pushing the boundaries of what is possible. Tesla, Waymo, Zoox, Baidu, Pony.ai—each is racing down its own path. As automakers and tech companies collaborate on this future, the competition will be fierce, but so will the opportunities to reshape transportation.
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Amazon.com, Inc. (AMZN): Free Stock Analysis Report Nissan Motor Co. (NSANY): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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