Toyota and Pony.ai have unveiled their collaboration. More than a year has passed since Pony.ai, a pioneering Chinese self-driving technology startup committed to revolutionizing the future of transportation through the creation of an ultimate autonomous mobility solution. In April 2022, Pony.ai achieved a significant milestone by becoming the first self-driving taxi company in China, obtaining an official taxi license from Chinese regulatory bodies.
Just a little over a year later, Toyota and Pony.ai have unveiled their joint initiative to embark on the mass production of robotaxis in China. Their strategic collaboration aims to establish a venture within this year, dedicated to manufacturing vehicles that integrate the startup’s autonomous driving technology and ride-hailing services.
As an integral aspect of this initiative, the two automotive giants, in conjunction with GAC-Toyota, a partnership between the Japanese automotive leader and China’s state-owned Guangzhou Automobile Group, will collectively invest over 1 billion yuan (approximately $140 million), as stated by Pony.ai in a Reuters report.
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Toyota China CEO Tatsuro Ueda affirmed, “This marks not only a significant stride for Toyota in realizing ‘Chinese-style succession and evolution,’ but also a fresh chapter in our business collaboration with Pony.ai.”
Established in 2016 by James Peng and Tiancheng Lou, Pony.ai operates out of both Fremont, California and Beijing, China. The company specializes in artificial intelligence solutions within the realm of robotics. Renowned as the foremost autonomous driving technology enterprise in China, Pony.ai is dedicated to revolutionizing transportation’s future by creating the most secure and dependable solution for self-driving mobility.
While the recent collaboration between Toyota and Pony.ai may appear as a novel development, the reality is that their partnership traces back to 2019, with Toyota actively infusing significant investments into Pony.ai. Back in February 2020, we covered Pony.ai’s funding round, in which Toyota led a $462 million investment, valuing the startup at $3 billion. CEO Peng Jun of Pony.ai emphasized that this strategic investment aimed to accelerate growth in the connected car sector.
China has positioned itself at the forefront of autonomous vehicle advancements, with Pony.ai leading the way through the initiation of robotaxi services in major cities such as Beijing, Shanghai, Shenzhen, and Guangzhou. The company has a global footprint, maintaining offices in the United States as well.
On the other hand, automakers from regions beyond China have somewhat adjusted their ambitious deployment schedules due to regulatory hurdles. In a recent update, Toyota unveiled its strategy to fast-track the local design and development of “smart cockpits” tailored to the distinctive preferences of the Chinese market. This strategic step aligns with the broader transition towards electric vehicles, as Toyota endeavors to keep pace with formidable local competitors through a more assertive approach.
