Pony.ai Partners with Dubai RTA to Accelerate Autonomous Mobility in the Middle Eastern Metropolis

Rhea-AI Summary

Pony.ai (NASDAQ: PONY) has signed a Memorandum of Understanding with Dubai's Roads and Transport Authority (RTA) to deploy its robotaxi fleet in Dubai. The partnership aligns with Dubai's 2030 Smart City Vision of transitioning 25% of transportation to autonomous mode by 2030. Initial supervised trials will begin in 2025, with fully driverless operations starting in 2026.

The company plans to launch its seventh-generation robotaxis in the second half of 2025, featuring a 70% BOM cost reduction while meeting automotive-grade standards. Pony.ai aims to expand its global robotaxi fleet to thousands of vehicles within 2 years, collaborating with Toyota, GAC Motor, and BAIC Motor for production. The company currently operates around 300 robotaxi vehicles in China and holds testing permits in the US, China, South Korea, and Luxembourg.

Positive

• Partnership with Dubai RTA expands global presence into Middle East market
• 70% BOM cost reduction in seventh-generation autonomous driving system
• Planned expansion to thousands of vehicles within 2 years
• Strategic partnerships with major automakers (Toyota, GAC Motor, BAIC Motor)
• Proven track record with 300 robotaxis operating in major Chinese cities

Negative

• Initial operations require supervised trials before full deployment
• Mass production and deployment not starting until late 2025
• Complex integration required with Dubai's existing transport infrastructure

News Market Reaction

+22.63%

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+22.63% News Effect

On the day this news was published, PONY gained 22.63%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

DUBAI, UAE, May 26, 2025 /PRNewswire/ -- Pony.ai (NASDAQ: PONY) today announces that it has entered a Memorandum of Understanding (MoU) with Dubai's Roads and Transport Authority (RTA) to deploy its advanced robotaxi fleet in the region. The collaboration underscores Pony.ai's commitment to advancing autonomous driving technology in one of the world's most dynamic metropolitan hubs.

Mr. Ahmed Bahrozyan, CEO of Public Transport Agency at RTA, stated: "The collaboration with Pony.ai marks another significant milestone in advancing Dubai's Self-Driving Transport Strategy. This partnership is integral to our goal of transforming 25% of all journeys in the city into autonomous trips by 2030, reinforcing Dubai's position as a global leader in autonomous mobility and innovation. We are excited to work with Pony.ai, a pioneer in autonomous driving technology, to further enhance the integration of smart transport solutions in Dubai."

Dr. Leo Wang, CFO of Pony.ai said: "Dubai stands at the forefront of intelligent urban mobility innovation, and we are honored to collaborate with RTA on this transformative initiative. By combining our proven autonomous driving technology and extensive fleet operation experience, we are committed to accelerating Dubai's transition to autonomous transportation."

Aligned with Dubai's 2030 Smart City Vision — which targets transitioning 25% of the city's transportation to autonomous mode by 2030 — the collaboration will introduce Pony.ai's autonomous driving technology through a multi-phase rollout. Initial supervised trials are set to launch in 2025, followed by fully driverless operations in 2026.

As a global leader in autonomous mobility solutions, Pony.ai plans to start mass production and deployment of its seventh-generation robotaxis in the second half of 2025. This initiative is expected to lay a robust foundation for the company's global expansion.

The company aims to ramp up its robotaxi fleet globally to thousands of vehicles within the next 2 years, positioning 2025 as the inaugural year for large-scale commercial deployment. This accelerated timeline is enabled by technological maturity, vehicle engineering, and operational readiness.

Pony.ai's seventh-generation autonomous driving system, recently showcased at Auto Shanghai 2025, exemplifies this technological readiness. The AD kit hardware suite achieves a 70% BOM cost reduction while meeting stringent automotive-grade standards. Its advanced sensor array handles complex scenarios ranging from high-speed highways to crowed urban centers like Dubai's business and financial districts. The platform-based design enables rapid adaptation across different vehicle types.

For vehicle production, Pony.ai collaborates with industry leaders including Toyota, GAC Motor, and BAIC Motor to develop its seventh-generation robotaxis. Mass deployment is slated for later this year following the vehicles' successful debut in Shanghai in April.

The company has established a comprehensive robotaxi operation system featuring fully automated processes from vehicle dispatch to service conclusion. In China, Pony.ai was the first autonomous driving company to offer fully driverless ride-hailing services across Beijing, Shanghai, Guangzhou, and Shenzhen. Its fleet of around 300 Robotaxi vehicles serves key hubs such as Beijing South Railway Station and Guangzhou Baiyun International Airport, while navigating complex environments such as Shenzhen's densely populated Nanshan District, demonstrating scalable solutions adaptable to global urban environments.

"We've built up real expertise in robotaxis from years of operations in China, and now we're bringing that know-how to Dubai. Our goal is to give residents and visitors here driverless tech that's not just greener and safer, but genuinely makes getting around this city easier for everyone," said Leo Wang.

Long-term plans include integrating robotaxi services with Dubai's multimodal transport network — encompassing metro, tram, and maritime routes — to create a future where autonomous vehicles complement existing infrastructure, enabling smoother journeys and reducing the city's carbon footprint.

To date, Pony.ai has secured robotaxi testing permits across four major markets, including the United States, China, South Korea, and Luxembourg. The new partnership with Dubai further extends its global presence and represents a milestone in its expansion in the Middle East.

 

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SOURCE Pony.ai

FAQ

When will Pony.ai (PONY) start robotaxi operations in Dubai?

Pony.ai will begin supervised trials in Dubai in 2025, followed by fully driverless operations in 2026.

How many robotaxis does Pony.ai currently operate?

Pony.ai currently operates a fleet of around 300 robotaxi vehicles in major Chinese cities including Beijing, Shanghai, Guangzhou, and Shenzhen.

What is the cost reduction in Pony.ai's new autonomous driving system?

Pony.ai's seventh-generation autonomous driving system achieves a 70% BOM cost reduction while meeting automotive-grade standards.

Which companies are partnering with Pony.ai for robotaxi production?

Pony.ai is collaborating with Toyota, GAC Motor, and BAIC Motor to develop its seventh-generation robotaxis.

In which countries does Pony.ai have robotaxi testing permits?

Pony.ai has secured robotaxi testing permits in the United States, China, South Korea, and Luxembourg.