Toyota(US:TM) Guan Cha Zhe Wang·2025-09-01 08:36Core Insights - Japanese companies, including Toyota and Panasonic, are looking to re-enter the U.S. autonomous driving market, capitalizing on the current geopolitical climate that restricts Chinese technology [1][3][4] - The absence of Chinese firms at the ITS World Congress 2025 has allowed Japanese firms to showcase their advancements in autonomous driving technology [1][3] - Toyota is shifting its strategy by collaborating with other companies, such as Nvidia and Waymo, to enhance its autonomous driving capabilities [3][4] Group 1: Market Opportunities - The U.S. market is becoming more inward-looking due to trade tensions, providing Japanese companies an opportunity to seek partnerships in autonomous driving [1][9] - Goldman Sachs predicts that the North American autonomous driving market will grow to approximately $7.3 billion by 2030, a 20-fold increase from 2025 [8] - The loosening of regulations in the U.S. regarding autonomous driving technology is seen as a favorable environment for Japanese companies to develop and test their technologies [3][9] Group 2: Technological Developments - Toyota's new software platform "Arene" will be featured in the upcoming RAV4 SUV, integrating AI and V2X technologies for enhanced vehicle safety and performance [1][3] - Japanese suppliers are transitioning from hardware-focused development to software development on cloud platforms, exemplified by Panasonic's collaboration with AWS [6][4] - The introduction of V2X technologies by various Japanese firms at the ITS World Congress indicates a strategic shift towards enhancing communication between vehicles and infrastructure [6][8] Group 3: Competitive Landscape - Japanese companies face significant competition from U.S. firms like Waymo, Tesla, and Cruise, which are heavily investing in autonomous driving technology [11] - The reliance on data for developing autonomous technologies poses challenges, especially with increasing data restrictions between countries [8][11] - The historical close ties between Japanese suppliers and automakers may hinder their ability to adapt quickly to the evolving U.S. market demands [4][11]