Driverless Taxis Could Capture Over 6% of China’s Ride-Hailing Market, HSBC Says
- tech360.tv
- 2 days ago
- 2 min read
Driverless taxis in mainland China could account for more than 6% of the country’s taxi and ride-hailing market, according to a report by HSBC.
The bank estimates the potential addressable market for robotaxis in China to be around USD 40 billion annually, supported by the nation’s advanced digital infrastructure and consumer openness to new technologies.
This projection represents 6.2% of China’s total taxi and ride-hailing market, which is valued at 465 billion yuan (USD 64.9 billion) in 2024, according to market consultancy iResearch.
“China is at the forefront of the global autonomous driving industry,” HSBC said, citing the country’s strong 5G infrastructure and high connectivity. “Robotaxis are fast approaching an everyday reality, albeit within strictly controlled parameters.”
In addition to transporting passengers, autonomous taxis could generate another USD 30 billion annually by offering logistics and delivery services, the report said.
Robotaxis in China typically operate with level 4 (L4) self-driving capabilities, meaning they require no human intervention in most situations, according to SAE International.
Several leading autonomous driving firms are already running pilot robotaxi programmes in major cities such as Beijing, Shanghai and Wuhan. These fleets operate in designated areas and charge fares as low as 10% of the average ride.
Baidu’s self-driving unit, Apollo, runs one of the world’s largest robotaxi networks in Wuhan, where hundreds of autonomous vehicles cover 35% of the city’s roads.
Tesla is also seeking regulatory approval to launch its robotaxi business in China. A licence would allow the company to test its Full Self-Driving system in the country, where it currently lacks sufficient data for training.
While removing human drivers could theoretically cut 70% of ride-hailing costs, HSBC cautioned that this assumption overlooks other expenses.
The bank noted that fleet management costs—such as cleaning, charging, parking and security—are often handled by drivers and would need to be addressed separately in a driverless model.
Additional costs include artificial intelligence inference, data handling, teleoperators and potentially higher insurance premiums, at least in the early stages.
Robotaxis could capture 6.2% of China’s USD 64.9 billion ride-hailing market
HSBC estimates the robotaxi market in China at USD 40 billion annually
Autonomous taxis may also earn USD 30 billion yearly from logistics services
Source: SCMP
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