Toyota Motor Corp. plans to sell 1,000 units of its compact electric bus, the e-Palette, within five to six years as it prepares to introduce a Level 4 autonomous driving version in fiscal 2027, which runs from April 2027 through March 2028. The target is more than 10 times the vehicle's current sales, positioning the e-Palette for broader use in mobility services across Japan.
Toyota began selling the e-Palette in September 2025 at JPY29 million (US$183,400), with several dozen units sold so far, according to Nikkei Asia. The automaker is testing the vehicle in several locations, including Woven City, its smart city under development, where it is being used for services such as food and beverage delivery.
The company is also evaluating the e-Palette for regional transportation and services aimed at addressing mobility challenges affecting older residents. Toyota plans to test the vehicle as a local transportation option in Takarazuka, Hyogo Prefecture. Autonomous operation is intended to help mitigate driver shortages in regional areas, while deployments at tourist destinations could support local economic activity.
Toyota is working with NTT Mobility and May Mobility Japan on autonomous driving tests using the e-Palette on public roads in Toyota City, Aichi Prefecture, according to Toyota's website and Jidounten Lab. If successful, the project would become Japan's first autonomous driving program to operate on ordinary public roads. NTT Mobility is pursuing services that support Level 4 autonomy, with plans to expand nationwide by the end of the 2020s and operate a fleet of 1,000 autonomous vehicles in the 2030s. May Mobility Japan has conducted autonomous driving trials and services in nine Japanese cities since 2024.
Toyota has continued to expand the e-Palette's applications beyond autonomous driving. The vehicle was scheduled to begin providing free transportation in Tokyo's Odaiba, Aomi and Ariake waterfront districts in October 2025, where facilities are dispersed and transportation options are limited. The automaker has also used the vehicle's cabin as a mobile storefront at Palette Market events selling food, beverages and merchandise. Toyota promotes the e-Palette's quiet ride, smooth operation and easy boarding for families with young children and older passengers.
Article edited by Jerry Chen
