AAA weekly
2020-01-13
Copyright FOURIN, Inc. 2024
Digitalization, AD, ADAS, Communication Trends in the Japanese Automotive Industry
Japanese OEMs need to figure out where to put development resources as the global market is expected to stagnate due to the slowdown of the Chinese market. In the 2020s, digitization centered on software development that is directly linked to product competitiveness will be the focus of next-generation product development along with sustainability.
Toyota is strengthening software development and digitization through TRI-AD, which went into full operation in December 2019. In the United States, TRI is collaborating with startups and research institutes to advance development in the AI field in an effort to improve competitiveness. Honda is pursuing digitalization through innovations by taking advantage of cross-industry collaboration. Meanwhile, Nissan is leveraging synergies with its alliance partners Renault and Mitsubishi. In the connected field, a number of Japanese OEMs cooperate with Toyota to improve the automaker’s on-board communication device DCM. The cooperation involves the accumulation of information for big data, which is the key to connected services, building an ecosystem in the CASE domain and expanding revenue sources. Toyota is adopting SmartDeviceLink (SDL), an open source digital platform created by a consortium co-founded with Ford, is currently introduced to new and updated Toyota models. SDL can use car navigation systems as in-car applications. SDL has been also adopted by Toyota’s subsidiary Daihatsu as well as by Suzuki which has been deepening ties with Toyota in the CASE domain. Looking at cloud platforms, some automakers have adopted Microsoft's Azure, setting industry standards in the automotive industry.
Regarding autonomous driving (AD), collaborative activities that transcend the boundaries of manufacturers have begun to stand out in the United States and Europe. However, Toyota continues to take the initiative promoting technology development through TRI in the United States. From 2020, public road testing of experimental vehicles equipped with technology equivalent to SAE Level 4 will be launched by Toyota. Meanwhile, the company plans to expand its AD services through external cooperation. Honda will also proceed with its own development and launch L3-equivalent technology in 2020. Nissan is partnering with Google’s Waymo with an aim to realize an unmanned driving dispatch service by 2022.
Major Japanese Automakers: Digitalization / Autonomous Driving / ADAS / Communication
Toyota Motor
Digitalization strategy
・Toyota is promoting software development and product digitization, centered on TRI-AD (Toyota Research Institute Advanced Development, approximately 300 billion yen in development investment, 430 employees as of October 2010), which began full-scale operation in December 2019. – Toyota has traditionally been ahead in the AI field, but has been somewhat reluctant to go digital in response to global customer needs. – With the full-scale operation of TRI-AD, the results of TRI (Toyota Research Institute)’s advanced development will be linked to Toyota’s product strategy. – DENSO affiliates have been mainly responsible for software development. – The Future Creation Center was established following a large-scale reorganization (transition to Toyota’s company system) after 2016. However, the company is mainly pursuing digitization, particularly in the service area, within the scope of its focus on connected technology. – The company has been promoting partnerships with Japanese companies and overseas startups, including the telecommunications industry such as SoftBank due to a sense of crisis regarding the entry and containment of non-automakers such as Apple, Google and Amazon in the automotive industry. – In conjunction with the shift to Toyota’s company system, the integration of related bases into the head office has also been promoted. This undertaking is intended to accelerate decision making and enhance product competitiveness. – In July 2018, Toyota’s IT development centers in Japan and the US, which are responsible for advanced and applied research in the fields of communications and information processing, were each merged with the head office’s connected company in Japan and TMNA in the US. – The company aims to build an ecosystem centered on Toyota as an automaker while utilizing innovation departments such as TRI for AI technology development and Calty Design Research, both located in the US. – However, it seems that the policy is shifting toward outsourcing CASE business and its separation from the head office from 2019. ・Toyota has adopted Microsoft's Azure for its group cloud platform and is using it in multiple areas. ・Toyota has partnered with NVIDIA regarding AI chipsets (SoC = System-on-a-Chip). ・Denso, which is responsible for Toyota's software infrastructure technology, will increase the number of software developers from the current 9,000 to 25,000 by 2025 for all areas of C.A.S.E. ・In addition, Toyota established the Digital Transformation & Mobility unit in North America in April 2018. – Zack Hicks, President and CEO of Toyota Connected North America (TCNA), is appointed as CDO (Chief Digital Officer). – It consists of three groups: information services, connected technologies, and next-generation mobility technologies, and focuses on shared mobility, connectivity services and OTA service updates.Connected strategy
・In connection to digitization, Toyota will build a mobility service platform (MSPF) utilizing big data in the CASE domain. – To build a MSPF, on-board communication equipment data communication module (DCM), which is essential for connected cars, will be standard equipment on passenger cars sold in Japan, the United States and China by 2020. – The information obtained from DCM will be used as big data in all areas of CASE. – First of all, the 2020 Tokyo Olympics and Paralympics are considered milestones. – BEV mobility such as e-Palette is likely to be mass-produced for corporate use. – The actual business in the connected field will be handled by the Japanese headquarters of Toyota Connected, which is a joint venture with Microsoft other companies and Toyota’s overseas subsidiaries.・In terms of products, since the launch of the Corolla in September 2019, the company has begun to equip standard display audio (DA) or equivalent functions in all Toyota and Lexus models. – Toyota introduced SmartDeviceLink (SDL, developed by Ford's software company Livio), an open source standard from a consortium co-founded in 2017 with Ford. It links up the display with smartphones. – SDL supports the free use of LINE car navigation system (only in Japan). Apple CarPlay and Android Auto are now available in the Japanese, US and European markets (paid subscription system with full-seg TV). – Regarding Apple CarPlay and Android Auto, they are compatible with a number Honda, Mitsubishi and Suzuki models since 2016 in Japan. SmartDeviceLink (SDL) of Toyota Corolla Sport (top) and Lexus RX (bottom) ・Regarding digitization in terms of production, Toyota has collaborated with Hitachi on IoT demonstration tests since October 2017. Toyota is building a high-efficiency production system utilizing the IoT platform. ・In 2017, Toyota joined the Enterprise Ethereum Alliance (EEA), a member-driven standards organization whose charter is to develop open, blockchain specifications. It is used for procurement and AD development.
AD / ADAS strategy and overview
・Toyota will start a public road test of AD technology equivalent to SAE Level 4 (L4) from 2020. ・Toyota's AD technology design philosophy is based on two ideas: 1 Guardian and 2 Chauffeur. – Guardian is a harmonious self-driving technology where machines cover human mistakes and weaknesses. The main actor is always the driver. It can also be used for L4 / L5 Chauffeur-type AD systems, and is also expected to be offered to mobility services and non-group clients. – Chauffeur is a machine that replaces human drivers, which is equivalent to L4 / 5 AD. ・The next generation BEV concept Lexus LF-30 Electrified, which was unveiled at the Tokyo Motor Show 2019 and is equipped with AD technology anticipated to be released in 2030, is based on the Lexus Teammate concept. It features state-of-the-art driving assistance functions with Chauffeur and Guardian modes. – In addition to fine-tuned vehicle behavior control and automatic parking functions, it will be equipped with AD pick-up function which drives the vehicle from the parking lot to the entrance of the owner’s home. – Steer-by-wire is used in the cockpit of the new concept. During AD, the steering wheel is moved forward to expand the space inside the vehicle.AD technology development partners
・As with other development areas, Toyota’s AD and ADAS development is based on in-house production (including joint development with affiliated companies such as group companies and DENSO). Advance development is performed by the TRI in the US. – At the same time, Toyota actively promotes horizontal collaboration with US startups and research institutes such as MIT which is the home university of TRI CEO and Toyota Executive Fellow Dr. Gill A. Pratt. ・TRI, based in Silicon Valley, USA, is in charge of advanced development, including AI, in the AD and ADAS fields. In addition, TRI-AD in Tokyo, Japan will develop software. ・TRI is promoting open source platforms in the field of AD and robotics. – In June 2018, Toyota granted 100,000 US dollars to the Computer Vision Center (CVC) of the Autonomous University of Barcelona, Spain, to promote the development of CARLA, an open source AD simulator. ・TRI-AD (Established in March 2018. Apart from Toyota, Denso and Aisin Seiki each has a 5% stake in the company. CEO James Kuffner, formerly member of Google’s software engineering team.) promotes advanced development of Toyota’s AD and ADAS software and digitization of the group. – With an aim to develop the world’s safest self-driving car, Toyota is strengthening the collaboration between TRI and Toyota Group. – In addition to AD software development, data handling (data aggregation and visualization) technology has been also enhanced. – In December 2019, the new office in Tokyo, Japan, which had been relocated in July of the same year, began full-scale operations. ・Toyota plans to continue investing in AD after 2019. In May 2019, TRI’s venture capital fund Toyota AI Ventures (TAIV) established a second 100 million-US-dollar fund. – The company invested in areas other than the automotive field, such as Sea Machines, an autopilot and navigation system for the marine industry. ・In February 2019, TRI-AD launched a demonstration experiment using a vehicle-mounted camera for next-generation of high-precision maps in collaboration with America’s CARMERA. – The concept is to use the open software platform Automated Mapping Platform (AMP) to share data on self-driving vehicles obtained from participating companies, create high-precision maps, and share them. – In April 2019, TRI-AD announced that it will collaborate with Maxar, a global space technology company based in Colorado, USA, and NTT Data to conduct demonstration tests of automatic generation of high-accuracy maps for AD vehicles using high-resolution satellite images. – High-accuracy map data can be generated by utilizing telematics data for AMP which will enable AD on any road.・For research and advanced development of next-generation automotive semiconductors, a joint venture, called Mirise Technologies (Investment ratio: Denso 51%, Toyota 49%) set up by Denso and Toyota, will be launched in April 2020. – Mirise will work on 1 power electronics, 2 sensing, and 3 SoC (System-on-a-Chip) technology development. – 1 In-house and commissioned production of power control units (PCU). 2 Development of sensing technology in cooperation with in-house entities. 3 Clarification of SoC specifications that are optimal for future mobility. – Toyota and Denso’s combined team of about 500 engineers will carry out the project two years at seven locations around the world.