Toyota and Pony.AI To Make Robotaxis In China

Toyota has formed a partnership with Pony.ai, a Chinese autonomous driving company, to manufacture robotaxis in China. The two companies are to establish a joint venture to develop vehicles employing autonomous technology for a ride-hailing service.

In collaboration with GAC-Toyota, the joint venture between Toyota and the state-owned Guangzhou Automobile Group, the alliance will invest over $140 million.

"This not only marks a vital step for Toyota in executing a 'Chinese-style succession and evolution', but also heralds a new phase in our commercial collaboration with Pony.ai," said Tatsuro Ueda, Toyota China's chief executive, in an official statement.

Since their initial collaboration on autonomous car technology in 2019, Toyota has invested hundreds of millions of dollars in Pony.ai. The company's CEO, Peng Jun, expressed that the alliance would foster the development of the connected car industry.

China stands at the forefront of self-driving car technology, with Pony.ai already operating a robotaxi service in Beijing, Shanghai, Shenzhen, and Guangzhou – the nation's four principal cities. Pony.ai also maintains a base in the US.

This strategic move comes at a time when numerous automakers have scaled back investments in autonomous car technology outside of China. Toyota has signalled that it will hasten the creation of smart cockpits tailored to the Chinese market's needs, part of a broader shift towards technology-driven vehicles, a direction it had previously resisted.

The collaboration between Toyota and Pony.ai accentuates China's leading role in the rapidly evolving field of autonomous driving, and highlights a renewed emphasis on localisation by global automotive giants. The investment signals a significant commitment by Toyota to not only embrace but also shape the future of transportation within China's unique and dynamic market landscape.