Autonomous driving firms revved up on biz growth

    Global robotaxi market expected to rise from $400m in 2023 to $45.7b in 2030

    By Fan Feifei | China Daily | Updated: 2025-05-27 10:33
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    The interior view of Baidu's Apollo Go driverless car in Wuhan, Hubei province, on April 12. JI PENGFEI/FOR CHINA DAILY

    Initial trials of dozens of Apollo Go autonomous vehicles will be deployed in select areas of Abu Dhabi, with phased expansion planned ahead of full commercial operations by 2026.

    Earlier this month, Apollo Go expanded testing in Hong Kong after completing over 14,000 kilometers of testing and being granted an updated pilot license by the Transport Department of Hong Kong. With the new license, it is able to conduct trials across expanded routes.

    It received permits to test autonomous vehicles in Hong Kong in December 2024, marking its first entry into a right-hand drive market and an important milestone in its journey toward globalization.

    With the expanded testing, the number of its vehicles operating in each test has been increased to 10, and the testing area will include dozens of roads. Looking ahead, the company said it anticipates an orderly rollout of autonomous vehicles in Hong Kong, ensuring safety as a top priority.

    "Chinese self-driving enterprises have strong technical prowess and accumulated rich testing and operational experience in the domestic market. They aspire to play a bigger role in the international autonomous vehicle field by leveraging their strengths," said Zhu Keli, founding director of the China Institute of New Economy.

    There is a surging demand for autonomous vehicles in overseas markets, while the open environment and supportive measures for autonomous driving technology in some countries, such as the UAE and Luxembourg, provide these companies with ideal testing sites and broader development space, Zhu said.

    Their global expansion will bolster the maturity of autonomous driving technology, propel the in-depth integration of global industrial chains, optimize resource allocation and inject fresh impetus into the self-driving sector across the globe, he added.

    Chinese self-driving company Pony.ai announced earlier this month that it has inked a strategic partnership with US-based ride-hailing service provider Uber to deploy its robotaxis onto the latter's platform.

    The partnership is expected to be first rolled out in a key market in the Middle East later this year, with a goal of scaling deployments to additional international markets in the future, said Pony.ai. During the initial pilot phase, these vehicles will have a safety operator onboard until the companies' fully autonomous commercial launch.

    This is a key step in Pony.ai's global expansion strategy, the company said, highlighting that its seventh-generation autonomous driving system facilitates the mass production of robotaxis on a more scalable and cost-effective basis.

    This technological advancement aligns with the strategic goals of the partnership, empowering Uber's platform to more quickly and safely integrate autonomous vehicles as the collaboration expands to new markets.

    Pony.ai has accelerated steps to expand its presence in overseas markets. It has established an R&D center in Luxembourg, with a key focus on accelerating autonomous driving innovation and integrating self-driving technologies into the country's next-generation transportation, while offering customized solutions for the European market.

    It has obtained a scientific testing permit for Level 4 autonomous driving from authorities in Luxembourg. This authorization expands Pony.ai's global testing portfolio, building on existing permits in China, the United States and South Korea.

    Level 4 vehicles can intervene if there is a system failure and do not require human assistance in most circumstances. However, a manual override option is still available.

    Under the newly granted permits, Pony.ai will commence on-road testing in collaboration with Emile Weber, Luxembourg's premier mobility solutions provider. The collaboration leverages Emile Weber's expertise in delivering integrated mobility solutions across public transit, private transportation and tourism sectors.

    The company has also set up a joint venture in South Korea in collaboration with a local tech company to promote the development and application of self-driving technology. The two sides plan to deploy an autonomous driving vehicle fleet in Seoul to provide ride-hailing services to the public.

    "China is at the global forefront of R&D and the application of self-driving technology, while the accelerated expansion of Chinese self-driving companies in overseas markets will be conducive to propelling the large-scale commercialization of the cutting-edge technology globally," said Zhang Xiang, a visiting professor at the engineering department of Huanghe Science and Technology University.

    Zhang said authorities in the Middle East and some European countries have a relatively open attitude toward autonomous driving vehicles and are promoting the testing and use of robotaxis thanks to technological advancements and cost reductions provided by robotaxis when compared to conventional taxi services.

    Zhang emphasized that due to the differences in road conditions, laws and regulations in various countries, enterprises need to conduct more road tests based on diverse scenarios, and learn about local traffic rules and consumer habits, adding there will be differentiated requirements in terms of privacy protection and data management, and compliance in overseas markets.

    Self-driving startup WeRide recently announced the launch of fully driverless robotaxi trial operations in Abu Dhabi, the first deployment of its kind in the Middle East. Starting this quarter, a fleet of its robotaxis will be piloted on public roads without a safety driver, marking a major milestone in the advancement of smart mobility in the city.

    The company is accelerating its global business expansion, with the UAE as a key market for autonomous driving growth and innovation. In July 2023, the company received the UAE's first and only national license for self-driving vehicles, authorizing testing and operation of its autonomous vehicles on public roads nationwide.

    In December 2024, WeRide and Uber launched their ride-hailing partnership in Abu Dhabi, marking the largest commercial robotaxi service outside the US and China.

    "Chinese self-driving companies expanding presence abroad may encounter some challenges, such as differences in culture, laws and regulations. Meanwhile, competition in overseas markets is fierce. They need to constantly enhance their technological strength in order to gain a firm foothold on the international stage," said Li Xinbo, an automotive industry analyst at China Auto Information Technology (Tianjin) Co Ltd.

    Moreover, as the operating costs and compliance risks in overseas markets are relatively high, these enterprises need to carefully assess and formulate strategic plans, speed up localization efforts and launch services that cater to local requirements when carrying forward their globalization push, Li said.

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