Nissan has unveiled its latest progress in autonomous driving, demonstrating technology designed to manage the challenges of crowded urban streets. However, the company only expects to introduce the system by 2027, but says the system will match, and even surpass, the capabilities of Tesla’s Full Self-Driving (FSD).
In a recent live demonstration in downtown Tokyo, Nissan showcased an Ariya electric SUV equipped with 11 cameras, five radars, and a next-generation LiDAR sensor. The prototype navigated through heavy traffic, responding in real time to red lights, pedestrians stepping into crosswalks, and cars merging at intersections.
Engineers highlighted that the system’s ability to adapt to such chaotic conditions marks a leap forward compared to earlier technology, which was largely limited to predictable highway environments.
“We think ours is smarter than Tesla FSD, just not as polished as a product,” said Tetsuya Iijima, Nissan’s general manager for assisted-driving technology, during the test drive. (via Bloomberg)
Nissan believes the future of self-driving lies in dense urban centers, where reliability and safety are tested to the extreme. While competitors have concentrated on highway automation, Nissan’s approach aims to solve the tougher problem of city driving.
If successful, the company plans to roll out autonomous ride-sharing services in Japan as soon as 2027, a move it sees as essential given the nation’s shrinking and aging population and a growing shortage of taxi drivers.
The initiative is being developed in partnership with UK-based startup Wayve Technologies, which specializes in AI-powered driving software. Backed by SoftBank, Wayve is expanding into Japan with plans to establish a test center in Yokohama.
For Nissan, the technology push is more than just innovation — it’s about survival. The company has struggled with weak sales, tariffs, and restructuring efforts in recent years. Last week the automaker announced it was not going to bring the Ariya to the U.S. market in 2026 due to weak sales, instead pinning its hopes on the upcoming next-generation Leaf.
