Key takeaways: Pony.ai will now be able to operate its robotaxis in the Shenzhen mainland, becoming the first company to do so.
The approval was jointly granted to Pony.ai and the Xihu Group, which formed a collaboration in June 2025.
The Chinese robotaxi market is projected to grow by 200× between 2025 and 2030, driven by falling operational and capital expenditure (CapEx) costs alongside rising revenues.
Pony.ai, one of China’s leading autonomous driving companies, has become the first to receive a city-wide operation permit for robotaxi services in Shenzhen.
The approval grants access to an expansive 2,000-square-kilometer area, home to 17.8M residents, marking a major step forward for large-scale autonomous mobility in China.
The permit was jointly issued to Pony.ai and Xihu Group, Shenzhen’s largest traditional taxi operator. The two companies formed a strategic partnership in June 2025, aiming to deploy 1,000 Gen-7 Pony.ai robotaxis across the city over the coming years.
Until now, autonomous taxis in China have been limited to small pilot zones, often confined to suburban districts. The new license allows Pony.ai to operate in dense urban and residential areas, beginning with Nanshan, Qianhai, and Bao’an, before expanding city-wide.
China’s Robotaxi Market
China’s autonomous driving ecosystem is evolving rapidly. Robotaxi services now operate in more than 10 cities, with fully driverless deployments already live in Beijing, Shanghai, Wuhan, Chongqing, and Guangzhou.
Market Size
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