Toyota (7203.T) and partner Pony.ai intend to mass produce robotaxis in China this year, establishing a partnership that will build cars that use the startup’s autonomous driving technology and ride-hailing services.
Pony.ai said in a statement that the two companies and GAC-Toyota, a joint venture between the Japanese automaker and China’s state-owned Guangzhou Automobile Group (601238.SS), will invest more than 1 billion yuan ($140 million).
“This is not only an important step for Toyota to carry out ‘Chinese-style succession and evolution’ but also a new stage in our business cooperation with Pony.ai,” Toyota China CEO Tatsuro Ueda said in the statement.
Toyota has invested hundreds of millions of dollars in Pony.ai since the companies first teamed up in 2019.
Pony.ai CEO Peng Jun said the move would support the development of the connected car industry.
China has been in the forefront of self-driving car development, and Pony.ai has started robotaxi services in Beijing, Shanghai, Shenzhen, and Guangzhou. The corporation has offices in the United States as well.
However, due to regulatory impediments, automakers outside of China have retreated from optimistic implementation plans expected a few years ago.
Toyota announced last month that it would speed domestic design and development of “smart cockpits” to match the needs of the Chinese market, as part of a larger shift to electric vehicles as it strives to catch up with increasingly competitive local rivals.
