The next generation, extra low floor, light rail vehicle (LRV) is increasingly drawing attention as a user friendly and comfortable urban traffic system. Mitsubishi Heavy Industries, Ltd. (MHI) has developed a bogie for the LRV by building the first domestic independent wheel system, and an extra low floor LRV, called the Green Mover Max, equipped with this bogie is now operating without trouble for Hiroshima Electric Railway Co., Ltd. In the course of the development of the bogie, both the electric powered bogie and the motor-less bogie were the subject of exhaustive design discussions and a thorough technical verification was carried out so that differentiation from the vehicles of foreign manufacturers and customer needs were attained. As a result, a vehicle with a high percentage of completion was able to be realized. Further, we have already started work on the development of the next generation LRV which is equipped with secondary batteries and does not use overhead lines and on the development of a vehicle suitable for urban service operation, aiming to further expand the market for the 100% extra low floor LRV.