China's Robotaxi Market Heats Up as New Players Enter Race
China's robotaxi market is heating up. Morgan Stanley predicts new government licenses will be granted as technology improves. Chinese companies are optimistic about transitioning to fully autonomous driving.
Baidu, the current leader with over 1,000 cars in a dozen cities, faces increasing competition. New entrants like CATL, Momenta, and Xpeng Motors are joining the fray. Meanwhile, Deeproute.ai plans to build robotaxis using its Vision Language Action (VLA) model. Horizon Robotics, with its 'Horizon SuperDrive' technology, is also making waves. UBS estimates that by the early 2030s, robotaxi companies could operate over 300,000 cars in China's top-tier cities, with a market size of $8 billion.
Chinese automotive technology companies, such as NIO and BYD, are identified as potential competitors to Tesla's Full Self-Driving. They are investing heavily in autonomous driving technology tailored for the Chinese market, emphasizing camera-based AI systems. Globally, excluding the US, the robotaxi market size is expected to reach $394 billion by the late 2030s.
Horizon Robotics is set to announce collaborations with robotaxi fleet operators later this year. As technology advances and competition intensifies, China's robotaxi market is poised for significant growth.
