Pony.ai and Toyota Join Forces to Mass Produce Robotaxis in China

Autonomous driving company Pony.ai has announced a strategic partnership with Toyota, aiming to develop a fleet of “fully driverless robotaxis” in the future. The collaboration is set to launch this year with an investment of approximately $139 million from GAC Toyota Motor Co., a joint venture between Toyota China and the state-owned Chinese automaker, GAC.

This new investment follows Toyota's significant commitment in 2020, when it injected around $400 million into Pony.ai. As part of the partnership, Toyota will provide Pony with an undisclosed number of its electric vehicles (EVs), which Pony will then equip with its advanced autonomous driving technology and integrated robotaxi network platform.

While $139 million might seem substantial, it's important to note that Pony has raised over $1 billion since its inception in 2016. However, the journey has been fraught with challenges. In 2021, Pony began testing driverless vehicles in California, only to have its permit suspended just six months later. That same year, the company downsized its autonomous trucking division, consolidating R&D teams and parting ways with several executives. Additionally, Pony faced legal troubles when it recalled its autonomous driving software and sued two former employees for allegedly stealing trade secrets to launch a competing startup, Qingtian Truck. Despite these setbacks, Pony's valuation has reportedly soared to $8.5 billion, though updates on this figure have been scarce.

Pony.ai is not alone in navigating these hurdles. The broader autonomous vehicle industry, once seen as a hotbed for venture capital investment, has experienced significant consolidation. Many startups have faded or vanished, particularly in the United States. The remaining players—a select group of well-capitalized companies either publicly traded or backed by large corporations—are gradually ramping up commercial operations, though at a much slower pace than initially anticipated.