Honda Motor Co. said Wednesday it will collaborate with General Motors Co. and its unit Cruise LLC on launching a service using self-driving vehicles in Japan and start feasibility tests later this year.

Automakers are scrambling to develop next-generation autonomous vehicles, with IT firms also joining the race. Honda and major U.S. carmaker GM agreed in 2018 to join hands in developing self-driving vehicles.

Honda said it plans to start a mobility business using the Cruise Origin, a self-driving vehicle being developed by the three companies, with an eye to offering new transportation solutions in potential collaboration with local governments in Japan.