China’s Robotaxi Market Could Surpass $60 Billion By 2030 – Jefferies By Investing.com

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

Jefferies said that since the Chinese government released clear policies for the self-driving industry in 2023, several local governments, especially Wuhan, have introduced test and pilot projects in the sector.

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

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

The brokerage said unit costs for robotaxis had fallen substantially over the past five years and the sector showed high long-term profit potential.

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

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

American electric vehicle maker Tesla Inc (NASDAQ: