China robotaxi market could pass $60 bln in 2030- Jefferies By Investing.com

Investing.com– China’s robotaxi market could exceed 450 billion yuan ($63 billion) in the next six years, Jefferies wrote in a recent note, citing strong efforts by local companies, supportive policies from Beijing and existing momentum from the electric vehicle market.

Jefferies said since the Chinese government rolled out clear policies for the self-driving industry in 2023, several local governments, most notably Wuhan, have introduced testing and pilot projects in the sector. 

The brokerage cited start-ups such as Pony.ai, WeRide and Baidu Inc’s (NASDAQ:) Apollo Go as top examples of China’s autonomous driving efforts. 

“China has achieved initial success in the EV race with NEV penetration exceeding 50% in July, and is poised to seek the new growth engine in the smart driving realm,” analysts at Jefferies wrote in a note. The country is likely to roll out more supportive measures for the sector in the coming years. 

The brokerage said unit costs for robotaxies had fallen substantially in the past five years, and that the sector presented high profit potential in the long term. 

But the capital-intensive nature of the industry meant that entry barriers into the sector remained high, indicating that established players in the sector were unlikely to face increased competition from new entrants.

Baidu Apollo is by far the biggest robotaxi operator in the country, with operations in 11 cities.

U.S. EV maker Tesla Inc (NASDAQ:) is also vying to enter the sector in both the U.S. and China, and is set to unveil its first robotaxi in October.