TIER IV wins Japanese grant to test autonomous buses in Saudi Arabia

What the grant covers

The grant comes from a program run by the Japanese Ministry of Economy, Trade and Industry that supports collaborative technology initiatives in the Global South. According to TIER IV, it will use autonomous driving technologies with a proven track record in Japan to help deliver safe, scalable mobility services adapted for local conditions.

The company says the work is meant to deepen collaboration with automakers, autonomous driving technology providers and local transportation operators, while establishing a business model for the future commercial operation of autonomous vehicles.

The release explains why public support matters here. Adapting a system to the traffic rules and driving environment of each country requires substantial upfront investment for large-scale data collection and AI model training. Demand and viable business models in new markets are also uncertain, which TIER IV says can be a significant burden and risk for private companies.

Three parts of the project

TIER IV describes the project in three parts.

• Vehicle integration: TIER IV will develop autonomous buses for deployment in Saudi Arabia, working with a European automaker to integrate its autonomous driving system. Autonomous vehicles developed in Japan will serve as a reference.
• Local adaptation and FOTs: The company will adapt and deploy an autonomous driving system based on open-source technologies and AI models. Training the models with local data is meant to produce a system tailored to local conditions, including the desert climate and right-hand traffic. Field tests will start in closed environments before expanding to public roads.
• Co-creation and talent development: TIER IV will work with local partners, transportation operators and government authorities to learn about operational environments, regional transportation needs and deployment requirements. With educational institutions, it will promote programs that foster talent in Science, Technology, Engineering and Mathematics through competitive events.

Saudi Vision 2030 and earlier groundwork

The release ties the project to Saudi Vision 2030, the country's strategy for economic diversification and social transformation. Saudi Arabia has set a target of making 15% of public transportation autonomous by 2030. TIER IV points to a growing need for sustainable mobility solutions that improve the convenience of public transport, enhance traffic safety and address the challenge of training skilled driving personnel.

In September 2025, TIER IV signed a memorandum of understanding with Elm, a developer of digital services and autonomous technologies. The company says it will build on that initiative, together with its experience deploying autonomous buses using open-source technologies and developing talent in Japan.

TIER IV states that it has conducted autonomous driving field tests in more than 120 regions across Japan, as well as in the United Kingdom and Australia.

What it means for Japan and the market

TIER IV says the knowledge gained in Saudi Arabia and neighboring countries will feed back into autonomous driving development in Japan. It also plans to use the insights in vehicle development, field tests and technology adoption across different vehicle types in other markets.

The company says it aims to strengthen the international competitiveness of Japanese autonomous driving technology and contribute to the growth of Japan's autonomous driving industry. The release gives no budget figures, timelines or service launch dates, so the scale and schedule of the deployment remain unspecified.