Chinese autonomous driving startup Pony.ai is gearing up for further international expansion with plans to establish a joint venture in South Korea.
Pony.ai recently inked a deal with South Korean tech company GemVaxLink in Seoul to form a joint venture aimed at providing autonomous driving mobility technology and services in the region, according to a press release.
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The joint venture, slated to be set up in Seoul within this year, will see Pony.ai and GemVaxLink collaborate on autonomous driving technology and application development. The initial phase will involve deploying a fleet of autonomous vehicles in Seoul to offer ride-hailing services to the public, Pony.ai stated.
This move marks Pony.ai’s latest foray into overseas markets, following its announcement in October last year of plans to establish a joint venture in Saudi Arabia. In October 2023, Pony.ai disclosed that it had received a $100 million investment from Saudi Arabia’s Neom and its investment fund NIF (Neom Investment Fund).
Pony.ai intended to form a joint venture with Neom in northwestern Saudi Arabia to deliver autonomous driving technology solutions for the region, as stated by the company last year.
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Established in late 2016, Pony.ai maintains research and development centers in Silicon Valley, Guangzhou, Beijing, and Shanghai, alongside local robotaxi operations.
In a press release today, Pony.ai mentioned that it has conducted autonomous driving research and development and fleet operations in China, the US, Saudi Arabia, the UAE, and South Korea since 2016, and already has self-driving solutions with potential for commercialization.
Pony.ai plans to leverage GemVaxLink’s R&D, services, and marketing resources for vehicle connectivity and software in South Korea to explore a commercial path for autonomous driving in the South Korean market, the company stated.
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According to Pony.ai, the autonomous driving solutions market in South Korea is expected to grow from about RMB 7.687 billion ($1.07 billion) in 2024 to about RMB 13.986 billion in 2028, with a compound annual growth rate of 16.2 percent, citing data from the Korea Advanced Institute of Science and Technology.
Pony.ai highlighted that most cars sold in South Korea with assisted driving systems currently have L1 and L2 capabilities, and L4 driverless applications have yet to be widely introduced. The company added that South Korea’s mature urban infrastructure and market environment provide a conducive environment for autonomous driving.
