TIER IV has been selected for a Japanese Ministry of Economy, Trade and Industry (METI) grant to run autonomous bus field operational tests (FOTs) in Saudi Arabia, which aims to make 15% of its public transportation autonomous by 2030. The METI program supports collaborative technology initiatives in the Global South. TIER IV says the project will adapt autonomous driving technology it already uses in Japan to local conditions, and will also develop local talent.
Highlights
- 15% target: Saudi Arabia aims to make 15% of public transportation autonomous by 2030 under its Saudi Vision 2030 strategy.
- 120+ regions: TIER IV reports it has conducted autonomous driving FOTs in more than 120 regions across Japan, as well as in the United Kingdom and Australia.
- Phased testing: Saudi FOTs will begin in closed environments before expanding to public roads.
- Elm groundwork: The project builds on a memorandum of understanding TIER IV signed with Saudi developer Elm in September 2025.
Why Is TIER IV Testing Autonomous Buses in Saudi Arabia?
Under Saudi Vision 2030, the Saudi government is pursuing economic diversification and social transformation, including its 15% autonomous public transportation target. According to TIER IV, continued urban development is increasing the need for mobility solutions that make public transit more convenient, improve traffic safety, and address the challenge of training skilled drivers.
The grant project builds on the memorandum of understanding TIER IV signed with Elm, a developer of digital services and autonomous technologies. TIER IV says it will combine that relationship with its experience deploying open-source-based autonomous buses in Japan and developing talent there.
How the Saudi Project Is Structured
TIER IV says the work aims to deepen collaboration with automakers, autonomous driving technology providers, and local transportation operators. It also aims to establish a business model for future commercial operation of autonomous vehicles. The project has three components.
Vehicle Integration
TIER IV will develop autonomous buses for deployment in Saudi Arabia with a European automaker, integrating its autonomous driving system into the vehicles. Autonomous vehicles developed in Japan will serve as the reference.
Local Adaptation and Field Tests
The company will adapt and deploy an autonomous driving system based on open-source technologies and AI models. Training those models on local data is intended to tailor the system to conditions including the desert climate and right-hand traffic. Testing will start in closed environments before moving to public roads.
Local Partners and Talent Development
- Operators and partners: TIER IV will work with local partners and transportation operators to understand operating environments and regional transportation needs.
- Government authorities: The company will share knowledge with authorities on local transportation challenges and deployment requirements.
- Educational institutions: TIER IV will run competition-based programs to develop talent in science, technology, engineering, and mathematics (STEM).
Why Government Funding Matters
TIER IV says autonomous driving systems must be adapted to each country’s driving environment and traffic rules to keep improving performance. That adaptation requires substantial upfront investment in large-scale data collection, AI model training, and related costs.
The company adds that uncertain demand and unproven business models in new markets make those investments a significant burden and commercialization risk for private companies. With the grant, TIER IV plans to build an autonomous driving system tailored to the local environment and advance talent programs aligned with Saudi Vision 2030 goals.
What TIER IV Plans to Bring Back to Japan
TIER IV says it will apply lessons from deploying in Saudi Arabia and neighboring countries to its autonomous driving development in Japan. The company also plans to use the insights in vehicle development, FOTs, and technology adoption across different vehicle types in other markets. Its stated aim is to strengthen the international competitiveness of Japanese autonomous driving technology.
TIER IV will run METI-funded autonomous bus field tests in Saudi Arabia with a European automaker, adapting its system to desert conditions as the Kingdom targets 15% autonomous public transportation by 2030.
