CBI member, Toyota has announced that it has invested $400 million in Chinese technology start-up Pony.ai in a bid to develop a self-driving vehicle with connectivity services.
As a result of Toyota’s investment, the Japanese car giant will hold a 13% stake in Pony.ai, which following its latest funding round, which totalled $462m is now valued at $3 billion.
Subscribers to China Direct may remember that last September, Toyota launched its pilot self-driving car in China, Apollo, in partnership with Pony.ai. According to a statement issued by Pony.ai, the latest investment by Toyota will sustain that project while extending collaboration on mobility services.
According to a statement issued by both companies: “Strengthened ties will enable deeper integration of Pony.ai’s autonomous driving system with Toyota’s robust vehicle platforms and technologies.”
According to fellow CBI member, McKinsey, China has the potential to become the world’s largest market for autonomous vehicles. Foreign manufacturers face many market access hurdles in their efforts to enter the market, however, given that the Chinese government has only licensed the essential mapping data needed to inform an autonomous vehicle to domestic manufacturers. Pony.ai has already begun testing its autonomous vehicle software in Beijing and Guangzhou, and has licenses to further test its systems in California and Shanghai.
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