China's self-driving car push hits legal and cost roadblocks

WeRide and Pony.ai turn to selling systems for short-term profits

20230118 Level 4 Taxi

Companies like Pony.ai are struggling to make self-driving taxis profitable. (Photo by Takashi Kawakami)

TAKASHI KAWAKAMI and NAOSHIGE SHIMIZU, Nikkei staff writers

GUANGZHOU/TOKYO -- China's efforts to get more nearly autonomous vehicles on its roads have become bogged down by growing uncertainty over the technology's near-term profit potential in a challenging environment.

The country has made significant strides in recent years under a national strategy that prioritizes autonomous-driving technology. A road map released in November 2020 calls for 20% of all new vehicles sold to have Level 4 capabilities -- letting them operate without a driver under certain conditions -- by 2030.

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