Shenzhen Grants Pony.ai Fully Driverless Permit Ahead of 2026 Expansion

TLDRs

• Pony.ai secures Shenzhen’s first fully driverless permit, enabling city-wide robotaxi services without human safety drivers.
• The company plans to triple its robotaxi fleet to over 3,000 vehicles by the end of 2026.
• Q3 revenue rose 72% year-on-year to $25.4 million, though net losses reached $61.6 million.
• Lidar suppliers Hesai and RoboSense stand to benefit from Pony.ai’s fleet expansion plans.

Pony.ai, the US- and Hong Kong-listed Chinese autonomous vehicle company, has achieved a major milestone by securing Shenzhen’s first city-wide permit for fully driverless commercial robotaxi operations.

The permit, awarded in October 2025, allows the company to operate its robotaxis across nearly 2,000 square kilometers of Shenzhen without a human safety driver onboard.

This regulatory breakthrough positions Pony.ai as a front-runner in China’s autonomous mobility market, particularly as it seeks similar approvals in other major cities such as Beijing, Shanghai, and Guangzhou. While the company has confirmed fully driverless service in these tier-one cities, city-wide coverage outside Shenzhen remains uncertain.

Global Expansion Targets 3,000 Robotaxis

Pony.ai currently operates around 961 robotaxis and aims to expand its fleet to more than 3,000 vehicles by the end of 2026, as per its third-quarter earnings report.

The firm is actively pursuing partnerships in eight international markets, including Qatar and Singapore, to introduce its autonomous services outside China.

The company’s ambitious expansion depends heavily on securing further city-wide permits. Shenzhen’s model allows operators to convert existing taxi licenses into robotaxi licenses, a regulatory pathway that may not exist elsewhere. Without similar approvals, the company’s growth potential in other cities could be constrained.

Q3 Revenue Shows Growth Amid Losses

Despite the positive regulatory news, Pony.ai’s financials reveal a mixed picture. In the third quarter, the company posted $25.4 million in revenue, a 72% increase year-on-year. Revenue breakdowns include $6.7 million from robotaxi services, $10.2 million from self-driving truck operations, and $8.6 million from technology licensing.

However, expenses outpaced revenue, resulting in a net loss of $61.6 million, a 46% increase compared to the prior year.

Cash and short-term investments declined to $587.7 million from $747.7 million in the previous quarter, highlighting the financial pressures accompanying aggressive global expansion.

Lidar Suppliers Poised for Surge

Pony.ai’s expansion plans could also create opportunities for lidar suppliers such as Hesai and RoboSense. Each of Pony.ai’s Gen-7 robotaxis uses four Hesai AT128 lidar sensors, meaning a fleet of 3,000 vehicles would require roughly 12,000 units, an increase of about 8,000 from current production.

RoboSense, which held 33.5% of the global automotive lidar market in 2024, has already signed mass production agreements with several Level 4 autonomous vehicle leaders, including Pony.ai.

The reduction in Gen-7 vehicle production costs, combined with rising demand for lidar technology, could put pricing pressure on suppliers while driving wider adoption of fully autonomous vehicles.

Future Outlook

Pony.ai’s Shenzhen permit marks a significant regulatory and operational achievement, giving the company a critical foothold as it pushes toward tripling its global robotaxi fleet by 2026.

However, the company must balance rapid expansion with financial sustainability and regulatory negotiations in other markets to realize its ambitious vision.

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