Japan's Honda and American auto titan General Motors announced on Thursday that they plan to launch a driverless taxi service in Tokyo in 2026, helping tackle labor shortages in an ageing society.

Co-developed by San Francisco-based self-driving car operator Cruise, the project also will offer "an entirely new kind of mobility experience" in Japan, Honda said in a statement.

"This will be a major step toward the realization of an advanced mobility society," its chief executive Toshihiro Mibe said.

The project is also aimed at "helping address societal issues facing Japan, such as the taxi and bus driver shortage," Honda added.

Autonomous vehicles are being pushed by Japan's government as the country battles a rapidly ageing population and persistent labor shortages.

In 2020, Japan became the first country in the world to allow a vehicle capable of taking full control in certain situations to operate on public roads.