Pony.ai, a China-based robotaxi startup, announced on April 23 that it has reduced the cost of its self-driving hardware and software package by 70%. This announcement coincided with the unveiling of its seventh-generation vehicle for autonomous ride-hailing at the Shanghai Auto Show.

According to Pony.ai's chairman and CEO, James Peng, the company's latest robotaxis cost 20%-30% less than those of its US competitor, Waymo, although he did not provide specific figures. The new vehicle is equipped with four NVIDIA DRIVE Orin chips and a sensor suite that includes 14 cameras, nine Lidar sensors, and four radar units.

For comparison, Waymo's robotaxis can cost between $100,000 and $200,000 to produce. In 2022, Chinese tech giant Baidu launched its sixth-generation robotaxi at a manufacturing cost of approximately RMB 250,000 (around $34,300), as reported by TechNode. Pony.ai showcased an AION V at the Shanghai Auto Show on Wednesday, April 23, 2025, featuring its autonomous driving hardware and software systems.

Pony.ai, which is Nasdaq-listed and backed by Toyota, emphasized the high durability and reliability of its robotaxis. Peng stated that all vehicle components are "mass-produced automotive-grade ones," with a lifespan of over 10 years and the ability to last for 600,000 kilometers (372,823 miles).

The company partners with Toyota, China’s GAC, and BAIC for vehicle production and aims to operate 1,000 robotaxis by the end of this year. Pony.ai plans to expand its autonomous ride-hailing fleet to 50,000 cars globally by 2028. Currently, it has over 250 robocars and nearly 200 robotrucks, primarily in Beijing, Shanghai, Guangzhou, and Shenzhen.

In November, Pony.ai raised $413.4 million through an IPO and a concurrent private placement, with Uber as one of the investors, according to Bloomberg. Pony.ai has three robotaxi models: a Toyota bZ4X, an AION V, and an Arcfox T5, jointly developed with Toyota, GAC, and BAIC, respectively.