Toyota is preparing to enter the fully autonomous vehicle market, announcing plans to begin manufacturing self-driving electric cars in 2027 as part of an expanded partnership with American company Waymo. It will build specially modified versions of its bZ4X electric medium SUV with Waymo’s autonomous driving technology to create a fleet of driverless taxis.

Production will take place at Toyota’s Takaoka plant in Japan, with the first examples scheduled to begin testing on Japanese roads in 2027. The vehicles will eventually be introduced to other international markets, including the United Kingdom, as Waymo continues to expand its autonomous ride-sharing operations beyond the United States.

5

Unlike other vehicles that are modified to accommodate autonomous driving technology after leaving the factory, Toyota will integrate Waymo’s hardware directly into the manufacturing process. That means the vehicles will be fitted with their self-driving equipment at birth, potentially allowing Toyota and Waymo to produce autonomous vehicles more efficiently.

The specially-equipped bZ4X will feature Level 4 autonomous driving capability, which allows it to operate without a human driver within designated areas under certain conditions. Toyota has also confirmed several modifications to make the model better suited to a driverless taxi, including additional rear legroom and automatic doors.

The announcement builds on an agreement signed between the two companies in 2025 to explore autonomous driving technology. Waymo is is owned by Google’s parent company Alphabet and already operates commercial driverless taxi services in several American cities, using vehicles including the Jaguar I-Pace.

Toyota executive vice president Hiroki Nakajima said the partnership represented an important opportunity to make autonomous driving technology more widely available.

“Safety technology makes the biggest difference when it reaches as many people as possible,” Nakajima said. “This collaboration will help scale that technology and bring it to customers in Japan and beyond through Waymo’s ride-hailing service.”

The first Waymo Toyota bZ4X models will start production sometime in 2027. For now, the largest car company globally announcing an entry into autonomous vehicle manufacturing is a huge step towards the wider adoption of driverless tech.