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US prohibits Chinese robot taxis and connected vehicles

Jan 15, 2025 - telematicswire.net
The U.S. Department of Commerce has announced a final rule prohibiting the import or sale of connected automobiles from Russia and China due to national security concerns. This rule also bans Chinese automakers WeRide and Pony AI from testing autonomous vehicles on American roads. The prohibitions will begin with software bans in the 2027 model year and hardware bans in 2029. However, the restrictions do not apply to Chinese software created before the new regulations, and vehicles over 10,000 pounds are exempt, allowing China's BYD to continue building electric buses in California. The California DMV is expected to enforce these restrictions similarly.

WeRide and Pony AI are prominent Chinese autonomous driving technology companies. WeRide, founded in 2017, focuses on AI-driven self-driving systems and aims to enhance urban transportation with its autonomous ride-hailing services. Pony AI, founded in 2016, has headquarters in both Silicon Valley and Guangzhou and specializes in autonomous vehicle solutions, partnering with major manufacturers like Toyota. Both companies have conducted extensive testing in various environments, contributing significantly to the autonomous driving industry. Pony AI's U.S. operations, which accounted for a small portion of its revenue, may be impacted by the new prohibitions.

Key takeaways:

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  • The U.S. Department of Commerce announced a rule prohibiting the import or sale of connected automobiles from Russia and China due to national security concerns.
  • Chinese automakers WeRide and Pony AI are prohibited from testing autonomous vehicles on American roadways.
  • The prohibitions will include software bans by the 2027 model year and hardware prohibitions by the 2029 model year, with exemptions for vehicles over 10,000 pounds.
  • Pony AI's limited robotaxi testing in the U.S. accounted for less than 1% of its total revenues in 2023 and the first half of 2024.
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