China's DiDi, GAC Aion partner to launch robotaxis by 2025
What's the story
China's leading ride-hailing service, DiDi Global, has announced a collaboration with electric vehicle manufacturer GAC Aion to mass produce electric robotaxis.
The joint venture is called Andi and plans to start selling these vehicles next year.
The first model will be a crossover electric SUV, according to the company's announcement.
A robotaxi is a type of autonomous vehicle with automation level 4 or 5 utilized by ridesharing companies for transportation services.
Industry impact
Joint venture aims to pioneer autonomous driving industry
GAC Aion's deputy general manager, Zhang Xiong, expressed that the joint venture positions them as a pioneer in the autonomous driving industry.
The partnership will enable them to lead in creating an early L4 commercial route and the world's first closed-loop business model for L4 development.
This model encompasses technology, smart manufacturing, and operations.
However, it remains unclear which regulatory body has granted the license for mass production of these vehicles.
Market competition
Andi secures funding and competes with Tesla
Formed last year, Andi has secured approximately $149 million in funding from two investors tied to Guangzhou's municipal government.
This development follows Tesla CEO Elon Musk's announcement of his company's plan to launch its own robotaxi in August.
The decision came after reports that Tesla had abandoned plans for a budget-friendly car, choosing instead to focus on creating self-driving robotaxis using the same compact vehicle platform.