Chinese startups are racing towards driverless automobile to lead the autonomous vehicle race in the future, reported CNBC Sunday.
The large-scale commercial self-driving cars will be a part of the project called “robotaxi.” AutoX, an autonomous car technology firm CEO Jianxiong Xiao said that “Robotaxis is the premier market for self-driving cars.”
The company is fully supported by e-commerce giant Alibaba. It is involved in making hardware and software technologies for the robotaxi project.
According to the reports, many other Chinese startups are working on the same goal to finish the autonomous vehicle project.
AutoX is currently based in Shanghai and opened the robotaxi services public in the city last month.
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A Race of Driverless Automobile Domination
The race for dominating the driverless automobile industry is already in motion. China is trying to become number one in the industry taking down other giants in the U.S.
According to a statement by McKinsey, China has the possibility of taking over the lead for self-driving cars.
Intelligence mobility experience published a list of self-driving car companies which included American companies like Waymo, Tesla, and Argo AI. Already Tesla found a major breakthrough globally by developing a driverless car experience.
Tesla founder Elon Musk promised that Tesla will hit 1 million self-driving cars by the end of 2020.
Experts also believe that future driverless car companies will create a $1.1 trillion industry from mobility services.
In China, already another startup called WeRide is working on the Robotaxi project in Guangzhou. The Chinese government is giving high priority to the project to become a leader in technology. Many startups are encouraged to take licenses from the city government to operate the project.
″(In the) range of 20 year or 30 years we can make the taxi driver as some job that existed only in history … like a typist.” – WeRide CEO Tony Han
A sustainable Model for Success
Chinese self-driving car makers are thinking about a sustainable business model. Tony Han thinks robotaxi production will be in full capacity within 2023. Moreover, WeRide is expecting to make money from the project after 2025.
Since hardware prices are going down by years it is possible to create a viable business model for future success in China.
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