Wuhan, the city known across the globe as the epicenter of the Coronavirus outbreak, is now at the forefront of the world’s largest driverless car experiment. With a population of 11 million and over 4 million cars, the city’s streets are now home to a fleet of 500 driverless taxis operated by tech giant Baidu. This number is set to grow, as Baidu plans to add another 1,000 robotaxis, highlighting China’s aggressive push towards autonomous vehicle technology.
Baidu’s latest 6th generation robotaxi, which costs around $27,500 to build, represents a significant leap in affordability and technological advancement. These vehicles, often operating without safety drivers, are part of a broader trend in China, where driverless technology is being rapidly commercialized. “I think there’s no need to worry too much about safety — it must have passed safety approval,” says Zhang Ming, a local grocery store owner near Wuhan’s Qingchuan Pavilion, reflecting the general trust among Chinese consumers in this burgeoning technology.
The Chinese government’s extensive support has been crucial in this development. In addition to designating testing areas, Beijing has implemented censorship to limit public discussion of safety incidents, aiming to foster a positive environment for autonomous vehicle technology. Surveys by J.D. Power indicate that Chinese drivers are more willing than their American counterparts to trust computers to guide their cars, a sentiment that has propelled China ahead in the global race for autonomous driving supremacy.
Baidu’s robotaxis are equipped with advanced AI technology and automated depot operations, including battery swapping, cleaning, and dispatching. This automation not only reduces operational costs but also paves the way for a more efficient and scalable robotaxi service. The company aims to be profitable by 2025 on a unit economy basis.
China’s dominance in this sector is also facilitated by its tight control over data. Chinese companies have established research facilities abroad but ensure that any findings are funneled back home. This has created a challenging environment for foreign automakers to leverage Chinese advancements for their vehicles sold elsewhere. “If you take California out of the equation, China’s autonomous driving industry would be nowhere near where it is now,” remarks Michael Dunne, a San Diego-based automotive consultant.
As cities across China, from coastal ports like Shenzhen to mountainous metropolises like Chongqing, continue to encourage broad experimentation with autonomous vehicles, the country is poised to lead the global transition to driverless technology. The China Society of Automotive Engineers predicts that by 2030, 20% of cars sold in China will be completely driverless, with another 70% featuring advanced assisted driving technology.
In contrast, the rollout of driverless taxis in the United States has faced significant hurdles. Companies like General Motors’ Cruise have halted services following safety incidents, and regulatory scrutiny remains high. Meanwhile, Chinese automakers are not only advancing rapidly but are also setting a precedent that may soon influence global markets.
