PONY AI Inc. Unveils Seventh-Generation Robotaxi Lineup, Targets Mass Production from mid-2025

Rhea-AI Summary

Pony AI Inc. (NASDAQ: PONY) unveiled its seventh-generation autonomous driving system and Robotaxi lineup at the Shanghai Auto Show. The new system features:

• 100% automotive-grade autonomous driving kit (ADK)
• 70% reduction in bill-of-materials costs
• 80% decrease in autonomous driving computation
• 68% reduction in solid-state LiDAR costs

The company showcased three Robotaxi models through partnerships with Toyota, BAIC, and GAC, including the Toyota bZ4X Robotaxi, ARCFOX Alpha T5, and second-generation Aion V. The modular platform architecture supports both Robotaxi and Robotruck services. Mass production is targeted to begin in mid-2025.

Positive

• 70% reduction in total bill-of-materials costs compared to previous generation
• Secured partnerships with major automakers Toyota, BAIC, and GAC
• Platform versatility supporting both Robotaxi and Robotruck services
• 100% automotive-grade ADK system promising enhanced stability and safety

Negative

• Mass production not starting until mid-2025, indicating potential revenue delay
• Significant capital investment likely needed for mass production scale-up

Insights

Automotive Technology Analyst

Pony AI's seventh-gen system slashes autonomous vehicle costs by 70%, paving way for mid-2025 mass production with major automaker partnerships.

Pony AI's seventh-generation autonomous driving system represents a significant technological leap for the robotaxi industry. The company has achieved 100% automotive-grade components with extended product lifecycle, addressing durability concerns that have plagued early autonomous vehicle deployments. Most impressive is the 70% reduction in bill-of-materials costs, including an 80% decrease in autonomous driving computation costs and 68% cut in solid-state LiDAR expenses - traditionally the most prohibitively expensive components in autonomous systems.

The modular platform architecture enabling deployment across both robotaxis and future robotrucks indicates mature system engineering that should accelerate commercialization. This approach mirrors successful platform-sharing strategies in conventional automotive manufacturing where standardized components drive economies of scale while allowing vehicle differentiation.

The simultaneous unveiling of three vehicle models through partnerships with Toyota, BAIC, and GAC demonstrates technology versatility and provides multiple paths to market. The Toyota bZ4X robotaxi as the first production model is particularly notable, giving Pony AI access to Toyota's renowned manufacturing expertise. While many autonomous technology companies struggle with securing manufacturing partnerships, Pony AI has established connections across both Japanese and Chinese automotive ecosystems, positioning them for multi-market deployment as regulatory frameworks mature.

Financial Analyst

Pony AI's 70% cost reduction and automaker partnerships signal transition from development to commercialization, with mid-2025 mass production target.

The announcement of mid-2025 mass production marks Pony AI's critical transition from development stage to commercial deployment. The headline 70% BOM cost reduction addresses the fundamental economic challenge that has prevented autonomous vehicle services from achieving positive unit economics. These cost improvements - particularly the 80% decrease in computing hardware and 68% reduction in LiDAR costs - directly improve the capital efficiency of fleet deployment, potentially accelerating the path to profitability.

The strategic partnerships with Toyota, BAIC, and GAC provide Pony AI with diversified manufacturing capabilities and market access strategies spanning both premium and mass-market segments. The Toyota collaboration is especially significant given their global manufacturing expertise and quality standards, while the Chinese partnerships provide access to the world's largest automotive market.

The modular system architecture enabling both passenger robotaxis and future robotruck applications indicates a multi-revenue approach rather than a single-use case strategy. The company's emphasis on its three strategic pillars - technology readiness, product integration, and operational capabilities - demonstrates a methodical approach to achieving the mid-2025 mass production target.

These developments position Pony AI competitively in the race to commercialize autonomous mobility, with a clear focus on the cost-efficiency necessary for sustainable scaled operations.

SHANGHAI, China, April 23, 2025 (GLOBE NEWSWIRE) -- Pony AI Inc. (“Pony.ai” or the “Company”) (Nasdaq: PONY), a global leader in achieving large-scale commercialization of autonomous mobility, today unveiled its seventh-generation autonomous driving system alongside the first public showcase of the Robotaxi lineup with Toyota, BAIC and GAC at the Shanghai International Automobile Industry Exhibition (the "Shanghai Auto Show").

The seventh-generation autonomous driving system features 100% automotive-grade autonomous driving kit ("ADK") with an extended product lifecycle, delivering enhanced stability and safety for passengers. Continuous design optimizations have also reduced a total amount of 70% bill-of-materials ("BOM") costs, among which with 80% decrease in autonomous driving computation ("ADC") and 68% cut in solid-state LiDAR, in each case compared to its predecessor. In addition, its modular platform architecture allows seamless adaptation across multiple vehicle models, covering from the three Robotaxi models to Robotruck services down the road.

Dr. James Peng, Co-founder and Chief Executive Officer of Pony.ai, commented, “2025 marks the inaugural year of Pony.ai’s mass-produced Robotaxis. Achieving scaled production hinges on three critical cornerstones, which form the foundation of Pony.ai’s strategy: advancing technology readiness, enforcing product integration, and refining operational capabilities. Over the past few years, we have refined these pillars, positioning us well to deploy Robotaxis safely and reliably.”

Dr. Tiancheng Lou, Chief Technology Officer of Pony.ai, added, “The safety requirements for L4 systems inherently surpass those of human drivers, which we believe is unattainable through merely imitating human behaviour. Our proprietary PonyWorld generates realistic scenarios, conducts high-fidelity simulations, and establishes behaviour evaluation benchmarks to make our autonomous decision-making go beyond human capability. Building on this advanced technology, our seventh-generation autonomous driving system not only makes L4 autonomous driving possible but also ensures scalability at a manageable cost.”

Three seventh-generation Robotaxi models were unveiled at the Shanghai Auto Show, developed through strategic partnerships with Toyota, BAIC and GAC. Our long-standing collaboration with Toyota has been further strengthened with the launch of the Toyota bZ4X Robotaxi, the first production model featuring Pony.ai’s latest system. We also launched new BAIC and GAC Robotaxi models—the ARCFOX Alpha T5 and second-generation Aion V, completing our next-generation Robotaxi models' lineup.

About Pony AI Inc.

Pony AI Inc. is a global leader in achieving large-scale commercialization of autonomous mobility. Leveraging its vehicle-agnostic Virtual Driver technology, a full-stack autonomous driving technology that seamlessly integrates Pony.ai’s proprietary software, hardware, and services, Pony.ai is developing a commercially viable and sustainable business model that enables the mass production and deployment of vehicles across transportation use cases. Founded in 2016, Pony.ai has expanded its presence across China, Europe, East Asia, the Middle East and other regions, ensuring widespread accessibility to its advanced technology. For more information, please visit: http://ir.pony.ai.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Statements that are not historical facts, including statements about Pony.ai’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in Pony.ai’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Pony.ai does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

Pony.ai
Investor Relations
Email: ir@pony.ai
Media Relations
Email: media@pony.ai

Christensen Advisory
Email: pony@christensencomms.com

FAQ

What cost reductions does PONY's seventh-generation autonomous driving system achieve?

The system achieves 70% reduction in total BOM costs, with 80% decrease in autonomous driving computation and 68% reduction in solid-state LiDAR costs compared to previous generation.

When will PONY begin mass production of its Robotaxis?

Pony AI plans to begin mass production of its Robotaxis from mid-2025.

Which automotive partners is PONY collaborating with for its Robotaxi lineup?

PONY is partnering with Toyota (bZ4X model), BAIC (ARCFOX Alpha T5), and GAC (second-generation Aion V) for its Robotaxi lineup.

What are the key features of PONY's seventh-generation autonomous driving system?

The system features 100% automotive-grade ADK, extended product lifecycle, enhanced stability and safety, and modular platform architecture supporting both Robotaxi and Robotruck services.

What vehicles are included in PONY's seventh-generation Robotaxi lineup?

The lineup includes the Toyota bZ4X Robotaxi, BAIC ARCFOX Alpha T5, and GAC second-generation Aion V models.