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

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

5 October 2026: TIER IV, the Tokyo developer of the open-source Autoware driving software, has been selected by Japan's Ministry of Economy, Trade and Industry for a grant that supports collaborative technology projects in the Global South. The money will pay for field operational tests of autonomous buses in Saudi Arabia, together with a talent development programme for the local workforce.

Not yet independently verified. The release does not state the size of the grant, the start date of the bus trials or the name of the European automaker. We will update this when it can be confirmed, and remove this note.

A bus built with a European automaker

TIER IV will develop autonomous buses for Saudi Arabia with a European automaker that is not named in the release. The automaker will integrate TIER IV's autonomous driving system into the vehicles, and Japan-developed autonomous vehicles will serve as a reference.

The system is built on open-source technology and AI models, which TIER IV will adapt and train on local data. Two conditions are named: the desert climate and right-hand traffic.

From closed tracks to public roads

The field operational tests will start in closed environments and then expand to public roads. TIER IV aims to deliver safe, scalable mobility services adapted to local conditions and to establish a business model for future commercial operation. The project is also meant to deepen collaboration with automakers, autonomous driving technology providers and local transport operators.

Local partners, operators, government authorities and educational institutions are all part of the plan, though only one partner is named: Elm, a developer of digital services and autonomous technologies, with which TIER IV signed a memorandum of understanding in September 2025.

Training for Saudi engineers

The talent side of the project centres on STEM programmes. TIER IV will run competitive events with educational institutions to build skills among the local workforce.

The policy behind it

Saudi Vision 2030 is the Saudi government's strategy for economic diversification and social transformation, and it targets making 15% of public transport autonomous by 2030. TIER IV points to growing urban development that creates demand for sustainable mobility, better traffic safety and an answer to the shortage of skilled driving personnel.

TIER IV's track record and the cost of going abroad

TIER IV has run autonomous driving field tests in more than 120 regions across Japan, plus the United Kingdom and Australia. Adapting a system to each country's driving environment and traffic rules calls for significant upfront investment in data collection and AI model training, and entering a new market carries demand uncertainty and business-model risk. The company says the grant helps offset both.

What it learns in Saudi Arabia and neighbouring countries will feed back into autonomous driving development in Japan. TIER IV plans to apply those insights to vehicle development, field tests and technology adoption across vehicle types in other markets, a step the release describes as strengthening Japan's international competitiveness in autonomous driving.

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• Grab will grow its Singapore AV fleet fivefold and has certified 30 operators

Sources

• TIER IV: TIER IV secures Japanese government grant to advance autonomous bus FOTs and talent development in Saudi Arabia, 5 October 2026