Chinese robotaxi firm Pony to enter mass production

The Guangzhou-based company plans to collaborate with state-owned automakers Guangzhou Automobile Group and Beijing Automotive Group, as well as Japan's Toyota, for production, targeting a fleet of 1,000 robotaxis by year-end, Lou Tiancheng, co-founder and chief technology officer, told the South China Morning Post.

A robotaxi of Pony.ai. Photo courtesy of the company

"We are anticipating a pickup in production of robotaxis. Over the past few years, we have solidified our tie-ups with carmakers to attest to the feasibility of building a large volume of driverless cabs."

Nasdaq-listed Pony.ai last week secured a permit to operate its robotaxis in Shanghai's Pudong New Area, allowing the company to charge fares, marking a pioneering step in China’s key commercial and financial hub, according to a company release.

The company will deploy its fleet in the Jinqiao and Huamu areas, covering a combined 40 square kilometers, with plans to gradually expand to other parts of Pudong, China's 1,400-square-kilometer pilot zone for showcasing advancements in a modern socialist system.

A combination of technology advancement and regulatory approvals now open the door for the rapid expansion of the company, said its chief financial officer Leo Haojun Wang.

"Not only because the vehicle itself becomes more and more mass produced but also all the regulation framework, especially in the U.S. and China, now allows us to commercially charge fares to the public," he told Bloomberg.

Pony.ai, founded in 2016, has also expanded its operations in Beijing, Guangzhou, and Shenzhen, now offering services "at any time," compared to its previous 7 a.m. to 11 p.m. schedule.

The company reported a 4.3% revenue increase to US$75 million last year, while its net loss more than doubled to $275 million.