Chinese Robotaxis Accelerate Global Expansion, Challenge US Dominance

Chinese robotaxi companies are expanding their operations internationally, outnumbering American counterparts in projects progressing towards commercialisation, according to a BloombergNEF analysis.

Credit: WAYMO

While American companies like Alphabet’s Waymo have primarily focused on domestic deployment, Chinese firms are establishing a presence in new markets.

Credit: WeRide

These Chinese companies, including Baidu’s Apollo Go, WeRide, and Pony.ai, are setting up operations in locations such as Dubai, Abu Dhabi, and Singapore. They are also exploring launches in Germany, the United Kingdom, and other European countries.

China views autonomous-driving technology as a strategic sector, with Beijing aiming for the nation to become the world leader in driverless vehicles by 2035. The government has resumed issuing robotaxi testing permits, a step intended to maintain competitiveness with the United States.

Regulators had frozen approvals for new autonomous vehicles or for expansion into additional cities for several months in the second half of 2024. This pause followed concerns from human taxi drivers regarding potential job displacement, but national interest in the emerging industry has now taken precedence.

Weisong Shi, a professor at the University of Delaware and director of its Connected and Autonomous Research Laboratory, noted that comparing progress is complex. He added that the technology is not yet robust enough to operate in severe weather conditions like significant snowfall.

In the United States, Waymo is a leading industry player, with fully driverless cars deployed in five cities and testing underway in at least 10 others. The National Highway Traffic Safety Administration opened a preliminary probe into a report regarding a Waymo autonomous vehicle operating in Atlanta that failed to stop for a school bus with flashing red lights.

Tesla has launched a limited number of Model Y vehicles with human supervisors in Austin, Texas. Zoox, whose shuttle lacks a steering wheel or pedals, is seeking broader clearance to expand services beyond its current offerings in Las Vegas, Nevada, and parts of San Francisco, California.

Meanwhile, fully autonomous services have emerged in some of China’s largest cities. WeRide operates a fully driverless service in Guangzhou, while Baidu offers one in Wuhan. Pony.ai transports passengers in driverless cars around Guangzhou and Shenzhen, holding permits for Beijing and Shanghai.

Pony.ai, headquartered in Guangzhou and backed by Toyota Motor, plans to increase its fleet to 1,000 vehicles by the end of this year. The company has partnered with local authorities in Dubai and Qatar. Its American depositary shares have risen approximately 29% this year.

James Peng, Pony.ai’s chief executive officer, stated that while American peers began development earlier, Chinese companies are rapidly catching up. He cited access to cheaper components, such as sensors from China’s extensive electric vehicle supply chain, and a pool of talented graduates from top Chinese science universities as advantages.

Baidu’s latest Apollo Go model, the RT6, costs around 204,600 yuan (US$28,800), the company said at an event in May last year. The four-seater, manufactured by Jiangling Motors, features voice controls, a massage function on reclining seats, and nearly 40 onboard sensors, including eight lidar units and 12 cameras.

Tesla CEO Elon Musk unveiled a prototype Cybercab a year ago that he said could cost less than US$30,000 and 'probably' will go into production in 2026. However, Tesla has faced challenges in meeting self-driving predictions and pricing announcements.

Ming Hsun Lee, head of Greater China auto and industrials at Bank of America, noted that Chinese companies’ low-cost vehicles appeal to global service operators seeking profitability. Lee also indicated that US companies appear less aggressive due to higher per-car bill of materials costs.

Chinese robotaxi firms encounter minimal local competition in overseas markets, as most American rivals are not yet prioritising global expansion. However, US companies interested in autonomous-car development have formed partnerships with Chinese firms. Uber Technologies has joined WeRide in Abu Dhabi, and Lyft has partnered with Baidu to launch robotaxi services in Europe starting next year, pending regulatory approval.

WeRide and Pony AI plan to launch limited service in Singapore as soon as this year with local partners including ride-hailing operator Grab Holdings and transport group ComfortDelGro. The Middle East is emerging as a key region for the widespread deployment of Chinese autonomous technology.

The Middle East offers a favourable climate, well-developed road infrastructure, and supportive policy regimes. Opposition from human drivers is also less significant in Gulf countries, where guest workers in service industry roles have limited influence, according to Paul Gong, head of China autos research at UBS.

Pony.ai, WeRide, and Apollo Go have all secured deals with Uber or local transport authorities in the region. Saudi Arabia’s Vision 2030 includes a national network of autonomous vehicles, electric vehicles, and charging stations. Dubai aims for 25% of the city’s trips to be autonomous by 2030, with Abu Dhabi targeting a similar goal by 2040.

The most populous city in the United Arab Emirates previously had an exclusive partnership with General Motors-backed Cruise to deploy robotaxis. After Cruise closed its business late in 2023, the emirate quickly forged deals with China’s Baidu, WeRide, and Pony.ai early in 2024. By September, the three companies’ vehicles were testing on designated streets in Dubai.

The region’s investment capital and eagerness to recognise autonomous innovation are also attractive. Abu Dhabi’s sovereign wealth fund Mubadala co-led a USD 2.3 billion financing round for Waymo in 2020. Saudi Arabia’s Neom project invested USD 100 million in Pony.ai in 2023. Dubai authorities awarded approximately USD 900,000 in prize money to WeRide for winning the 2025 World Challenge for Self-Driving.

For WeRide, the Middle East serves as a springboard for further global expansion, allowing the company to demonstrate its business model, according to Chief Financial Officer Jennifer Li. Li anticipates having several hundred robotaxis in the region soon and aims for per-vehicle profitability as the fleet size increases.

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• Chinese robotaxi companies like Baidu’s Apollo Go, WeRide, and Pony.ai are rapidly expanding internationally, surpassing US firms in commercialisation stages.

• China views autonomous driving as a strategic sector and aims to be a world leader by 2035, with government policies supporting this goal.

• Chinese companies are establishing operations in the Middle East and Southeast Asia, with plans for Europe, leveraging cost advantages and a strong local supply chain.

Source: SCMP