Robotaxi Mass Production Takes Off: Pony.ai’s Commercial Leap and Global Layout

Pony.ai's revenues in 2023, 2024, and 1H25 were $72 million, $75 million, and $35 million, respectively, representing year-on-year growth rates of +5%, +4%, and +43%. Among these, Robotaxi revenues in 2023, 2024, and 1H25 were $8 million, $7 million, and $3 million, respectively, representing year-on-year changes of -14.4%, -5.4%, and +179%, indicating that Robotaxi has not yet been commercialized at scale but is beginning to accelerate. This article will focus on Pony.ai's Robotaxi business, analyzing its vehicle technology, business model, current operations, and future strategy.

Figure: Pony.ai’s disaggregation of revenue in the second quarter of 2025, source: Pony.ai’s 2025Q2 earnings call

1. Vehicle Introduction: Gen-7 Features Significant Cost Reductions and Is Ready for Mass Production

The seventh-generation model is equipped with 7 LiDARs, 11 cameras, and 5 millimeter-wave radars, with an overall computing power of approximately 1000 TOPS and a per-vehicle cost of approximately RMB 270,000 yuan.

• Mass Production and Automotive-Grade Standardization: Gen-7's primary technical objective is 'mass production replicability.' The company states that the 7th generation model has achieved 100% automotive-grade ADK (Autonomous Driving Kit), with domain controllers and sensors utilizing automotive-grade supply chains and components, targeting a lifecycle of 10 years or 600,000 kilometers, thereby transitioning from an R&D prototype to industrialization.

• Cost Reduction: Gen-7 achieves an approximate 70% overall cost reduction in the ADK BOM(with an 80% reduction in computing components and a 68% reduction in solid-state LiDAR costs), a key improvement achieved through software-hardware collaboration, supply chain optimization, and large-scale procurement.

• Computing Power and Redundancy Design: The 7th-generation domain controller utilizes a multi-chip redundant architecture. Its L4 domain controller has undergone road verification exceeding millions of kilometers.

• Vehicle Model and Platformization: Gen-7 is designed for compatibility across multiple vehicle models (Toyota bZ4X, BAIC, GAC, Aion V, etc.), emphasizing that its " platform-based module" allows for rapid integration onto diverse vehicle platforms, shortening the adaptation-to-mass-production cycle and expanding OEM capabilities.

2. Business Model: Three-Dimensional Approach to Commercialization

Pony.ai has established a three- dimensional business structure of "Mobility Services + Freight Services + Technology Licensing." PonyPilot is driven by fare and GMV, while PonyInside relies on one-time ADK sales plus annual license fees.

a) Robotaxi Operating Revenue (PonyPilot self-operated/joint venture/outsourced):

Revenue reached $3 million in the first half of 2025, a YoY increase of 158%. Pony.ai provides paid mobility services within cities, either with its own fleet or in cooperation with Transportation Network Companies (TNCs). Revenue is generated from passenger fares, with Pony.ai bearing or sharing vehicle depreciation, operation, and maintenance costs. For example, in first-tier cities such as Beijing, Guangzhou, Shenzhen, and Shanghai, paid services are provided by Pony.ai and its partners. Furthermore, Pony.ai collaborates with fleet companies by selling autonomous driving technology and operation capabilities or establishing joint ventures. This model involves Pony.ai providing technology and services, while the fleet company is responsible for vehicle investment and revenue sharing. CAPEX is borne by the fleet, and Pony.ai receives fixed profit shares or technical service fees. This approach enables a rapid expansion of the fleet, but gross profit margins are typically lower than the self-operated model.

b) ADK, Domain Controller and Licensing (PonyInside):

In the first half of 2025, the revenue was $15 million, primarily from one-time sales of ADKs (Autonomous Driving Kits) to OEMs and logistics companies, along with annual license and cloud service fees. The seventh generation emphasizes a "100% automotive-grade ADK + extended lifecycle," forming the basis for monetization.

Consider unmanned logistics/passenger transportation in a major first-tier city: Pony.ai initially conducts trial operations with a small, self-operated fleet (10–100 vehicles) to gather high-frequency data and validate safety protocols. → During this verification phase, Pony.ai establishes operational SOPs (Standard Operating Procedures) and RA (Remote Assistance) protocols. → Expansion agreements are then forged with local fleets or TNCs, integrating a larger number of vehicles (purchased by the fleets and equipped with Pony.ai’s ADK). → Pony provides continuous remote operation, maintenance, software updates, and data services, charging annual fees or profit shares. The remote RA system is designed to intervene only when the vehicle sends a request, rather than relying on continuous manual driving, thereby significantly reducing labor costs.

c) Robotruck/Enterprise-level Solutions:

In the first half of 2025, the revenue reached $17 million. This includes fee-based services or customized integration for logistics trunk lines (in cooperation with Sinotrans etc.). Such orders usually have large volumes and significant per-vehicle contributions, resulting in better unit economics than early Robotaxi deployments. This is a key pathway to improve early-stage revenue and cash flow. Pony.ai is also pursuing a dual-track "PonyPilot + PonyInside" strategy for Robotrucks.

3. Current Operations and Future Plans: Deepening domestic mass production and achieving global breakthroughs

Pony.ai has defined a dual strategy of "domestic scaling and overseas strategic positioning." With 2025 as the first year of mass production, the company is accelerating its transformation from technology validation to commercial scaling.

Domestic Market

Currently, Pony.ai offers fully driverless Robotaxi paid services in Beijing, Shanghai, Guangzhou, and Shenzhen, with city coverage second only to Apollo Go. The total operating area exceeds 2,000 square kilometers, covering core transportation hubs such as central urban areas, airports, and railway stations. Zhuifeng Intelligent Tech, a joint venture between Pony.ai and Toyota/GAC, plans to build an initial fleet of 1,000 bZ4X Robotaxis equipped with Pony.ai's 7th-generation system to provide truly unmanned mobility services in first-tier cities. By the end of the second quarter of 2025, Pony.ai's total fleet size has exceeded 500 vehicles, with over 200 vehicles produced within two months since the launch of mass production in June. Pony.ai expects to reach the target of 1,000 vehicles by the end of 2025.

Overseas Market

Pony.ai has pilot programs or collaborations in Luxembourg, South Korea, Singapore, and the Middle East. By leveraging local transportation infrastructure and policy support, Pony.ai is building cross-border operation capabilities. The Middle East market has become the first commercialization scenario. In 2025, Pony.ai formed a strategic partnership with Uber and will integrate Robotaxi services into the Uber platform in the second half of the year, starting in the Middle East. Fully unmanned commercial operation is planned for Dubai in 2026.

Figure: Global Expansion Footprint of Pony AI, source: 2025Q2 earnings call

Conclusion:

As of Q2 2025, Pony.ai's global autonomous driving test mileage had exceeded 50 million kilometers, with fully unmanned mileage exceeding 9 million kilometers. Pony.ai is currently prioritizing the large-scale commercial deployment of Robotaxis. Once technological barriers are established, this can be rapidly transferred to Robotruck, forming a second growth curve. At present, Pony.ai still has a significant net loss, which reflects the high-investment nature of the industry. However, with the mass production of the seventh-generation model and the expansion of the fleet size (which will reach 1,000 vehicles by the end of 2025), Robotaxi revenue is expected to surge in the next two years, driving improvements in overall gross profit margins and cash flow.